Naiise to close remaining store at Jewel Changi Airport amid financial issues

HOMEGROWN retailer Naiise will close its Jewel Changi Airport store - its last and largest in Singapore - this Sunday, amid an ongoing struggle to pay its vendors.

It was reported in January last year that some brands had withdrawn their stocks from Naiise, which sells on a consignment basis, after being owed sums ranging from hundreds of dollars to five-digit figures. Some vendors told The Business Times (BT) that they are still waiting to be paid.

In response to queries from BT, Naiise founder Dennis Tay said the Covid-19 pandemic affected the business and its ability to pay vendors. "These claims happened before Covid-19 and (Naiise) never recovered from Covid-19."

But he stressed that Naiise is trying to revive itself, such as by refocusing on online retail, where it first started. The closure of the nearly 9,500 square foot store Naiise opened at Jewel in mid-2019 will see the retailer exit a "relatively big" investment made at a "wrong time".

This is the latest in a series of cost-cutting measures Naiise has embarked on. Last year, it withdrew prematurely as the operator of Design Orchard's retail showcase; it also halved headcount, BT reported.

Currently, Naiise has just two or three full-time staff, Mr Tay told one of the vendors in an email seen by BT. The company's finance head has left.

In the email, Mr Tay also wrote: "I'm hoping that by doing so (cutting costs), we'll be profitable again and we will then continue to be able to fulfil these obligations in the long term."

But some vendors are skeptical, having chased Naiise for payment over the years to no avail.

A spokesperson for Bespoke Parfums Artisanaux, which left Naiise last September as it is owed about S$10,000, said some vendors suspect Naiise will eventually close for good.

This is as some of them have received a reply from Naiise saying it would only start paying the debts from September this year. "Why September? We think they will be gone by then," the spokesperson said.

The vendors are also worried that there are limited courses of action they can take against Naiise. For instance, some are hesitant to sue the company as they are not sure the sums they are owed are worth the cost of legal action.

Others have turned to the Small Claims Tribunals and found no luck. BT found that in 2020, there were 22 cases taken out against Naiise. Most resulted in money orders, which mean Naiise must pay the vendor by a certain date, or face enforcement proceedings.

But for Melissa Lam, founder of Bamboo Straw Girl, Naiise did not turn up for the hearing and has not paid the nearly S$5,000 it owes her by the Jan 30 deadline.

When she approached Naiise, Mr Tay offered to pay her S$60 the first time and S$500 the second time. On the second occasion, he had told her "this is the best I can currently come up with now, while still trying to make some repayment to others".

Others have shared similar experiences in a Facebook group of about 100 vendors frustrated with Naiise.

According to the Small Claims Tribunals website, money orders can be enforced but the outcome is not guaranteed. A money order can be enforced with a writ of seizure and sale of the debtor's physical assets. Alternatively, Naiise's bank can be ordered to pay the debt, provided the company has enough money in there.

"As a small business, we appreciate champions and supporters who support local brands such as ourselves. While Naiise professes to champion local brands, our predicament also reveals that it is doing so at our expense," said Ms Lam, who has been owed payment since late-2019.

"Our emails went unacknowledged for months on end... I can't help but feel very disappointed that our small local businesses are treated with little respect and appreciation," she added.

Overseas, Naiise's Malaysia outlet also appears to be closed. It also owes payments to some vendors there, BT understands.

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