No Signboard places beer subsidiary into creditors' voluntary liquidation

CATALIST-LISTED No Signboard Holdings said on Monday (Mar 14) that it will be placing its indirect wholly-owned subsidiary, Danish Breweries, into creditors' voluntary liquidation (CVL).

In a bourse filing, the restaurant operator said the subsidiary cannot continue its business by reason of its liabilities. It said: "The group has decided to proceed with the CVL of the subsidiary due to its cash flow problems and its inability to pay its debts as they fall due."

Danish Breweries was acquired by the group in June 2017 and is engaged in the business of the import, export and general wholesale trading of beer and liquor.

As the subsidiary is loss making, the voluntary liquidation is expected to "contribute positively" to the net tangible assets and earnings per share of the group for the current financial year ending Sept 2022, No Signboard said.

No Signboard shares last traded at S$0.031 in January, before a voluntary trading suspension was requested, as the company was not able to demonstrate that it is able to continue as a going concern.