Parkson Retail Asia submits application for voluntary bankruptcy in Vietnam

Parkson Retail Asia submits application for voluntary bankruptcy in Vietnam

🚫 The Board of Directors of Parkson Retail Group Ltd, together with its subsidiaries, announced on April 28 that Parkson Vietnam Co., an indirect wholly owned subsidiary of the company, filed an application to the People’s Court of Ho Chi Minh City for the commencement of voluntary bankruptcy proceedings.

💣 This decision was made by Parkson Retail Asia Ltd. after nearly 20 years of operations in Vietnam. The company has built a total of eight centres, but only one is currently in operation, the Parkson Saigontourist Plaza located on Le Thanh Ton Street, District 1, Ho Chi Minh City.

🛒 According to Parkson Retail Asia’s announcement, Parkson Vietnam has historically been operating at a loss, with the issue being compounded lately due to the challenging business environment.

✅ The application is, however, subject to approval from the relevant authorities in Vietnam. The company will only be able to determine the exact financial impact of the voluntary bankruptcy of Parkson Vietnam on the consolidated net tangible assets per share and earnings per share of the group for the current financial year ending December 31 upon the grant of the application.

⚖️ Under Vietnamese law, the liabilities of Parkson Vietnam will remain with and be limited to Parkson Vietnam and do not extend to the company, its other subsidiaries, or its holding companies, Parkson claimed.

💰 The group’s maximum potential exposure resulting from the voluntary bankruptcy of Parkson Vietnam will therefore be limited to its capital contributions to Parkson Vietnam. The company has recognised full loss of these contributions in its audited financial statements.

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