11 former Robinsons staff seek help from MOM and TADM

Singapore

SOME 11 former employees of Robinsons have approached the Ministry of Manpower (MOM) and the Tripartite Alliance for Dispute Management (TADM) for help over the payment of retrenchment benefit, salary-in-lieu of notice and encashment of unconsumed annual leave.

The Business Times (BT) understands that the affected employees also raised concerns about securing new employment.

When asked, an MOM spokesperson said: "MOM and TADM have advised them on filing their claims with Robinsons' appointed liquidator. MOM is also in touch with the Singapore Manual and Mercantile Workers' Union and e2i on employment facilitation for affected staff."

The appointed liquidator, KordaMentha, has confirmed that all employees have received their October salaries.

For former employees, Robinsons has asked them to file their outstanding contractual and statutory claims including salary-in-lieu of notice, unconsumed annual leave, pro-rated Annual Wage Supplement and retrenchment benefit with their appointed liquidator.

The liquidator will then disburse the payment to employees, up to a maximum of S$13,000 per employee provided in the Insolvency, Restructuring and Dissolution Act (IRDA).

Claims in excess of S$13,000 will be separately assessed by the liquidator together with filings from other creditors.

In a liquidation process, certain classes of debt have priority over all unsecured debts. After secured creditors and the costs of winding up such as the liquidator's fees are paid, the next in line in terms of payment would be wages, retrenchment benefits, CPF contributions and leave encashment.

"Employees who need further advice and assistance with the process can approach TADM or their union," the MOM spokesperson said.

Robinsons, a 162-year-old retailer in Singapore, will close down for good. Dubai-owned Al-Futtaim, which has been managing the Robinsons brand here over the past 12 years, decided to put it under a creditors' voluntary winding-up. It said demand for large-scale department store concepts has weakened significantly in recent times due to changing consumer tastes, rapidly changing retail trends and cost pressures. The decision to close Robinsons in Singapore was one of last resort after all other possible options had been exhausted.

Al-Futtaim noted Robinsons is the only department store concept under the group.

When asked about how the other brands under the Al-Futtaim Group are faring, it said the others are based on a single-brand concept and generate their own unique brand appeal and following. "While the retail environment in Singapore remains challenging for all retailers, there is no impact on all our other brands and it remains business as usual for them."

The exit puts an end to at least six years of losses that Robinsons has chalked up against declining revenues. Financial records show that the company made a loss after tax from continuing operations of S$26.5 million in 2014. It sank further into the red up until 2018, when it recorded losses of S$54.4 million.

The exception to this was in 2015, when it narrowed its losses to S$17.4 million.

Meanwhile, Robinsons' topline shrunk. It generated S$153.8 million in revenue in 2018, down from the S$257.3 million it made in 2014.

Robinsons stores in Malaysia, located at Shoppes at Four Seasons Place and The Gardens Mall, will also undergo a similar liquidation process concurrently.