Isetan’s China associate to cease operations amid Covid-19, lease renewal challenges

CHENGDU Isetan Company Limited, a China-based associate of mainboard-listed Isetan, will cease operations of its 2 stores by the end of this year, the company announced in a Monday (Jun 27) bourse filing.

Reasons for the closure include Chengdu Isetan being unable to renew the lease of its main store, as well as the pandemic and stiff competition in the China market. After the stores are closed, Chengdu Isetan will commence proceedings on its dissolution and voluntary liquidation from 2023.

“As the liquidation process is estimated to take several months to complete, the company is unable to establish the exact financial impact of this event at this point in time,” Isetan said in the filing.

Shares of Isetan closed flat at S$3.71 on Monday.