Miniso Canada is collapsing
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Miniso Canada is on the brink of bankruptcy after an action brought against it by its Chinese parent company alleging fraudulent business dealings and the transfer and hiding of assets. The extraordinary situation was revealed by Canadian website which in its last update reported the Canadian subsidiary had reached a preliminary agreement with the Chinese company to avoid the move.
Miniso China has declined comment.
Citing court documents, Miniso China is owed C$20 million (US$14.7 million) and had retained a lawyer to commence legal action in British Columbia courts to recover the amount.
Minso launched in Canada last year with plans for 500 stores within five years. To date it has opened 48.
Questions & Answers
Q.Why is Miniso Canada facing financial difficulties?
Why is Miniso Canada facing financial difficulties?
Miniso Canada is on the brink of bankruptcy due to legal action from its Chinese parent company, Miniso China, which alleges fraudulent business dealings and the transfer and hiding of assets by the Canadian subsidiary.
Q.How much money does Miniso China claim it is owed by the Canadian subsidiary?
How much money does Miniso China claim it is owed by the Canadian subsidiary?
Miniso China claims it is owed C$20 million (US$14.7 million) by Miniso Canada. This figure is cited in court documents related to the legal action initiated by the parent company.
Q.What was Miniso Canada's initial expansion plan, and how many stores has it opened so far?
What was Miniso Canada's initial expansion plan, and how many stores has it opened so far?
Miniso Canada launched last year with ambitious plans to open 500 stores within five years. To date, however, the company has only managed to open 48 stores across Canada.
Q.Has a resolution been reached between Miniso Canada and its Chinese parent company?
Has a resolution been reached between Miniso Canada and its Chinese parent company?
A Canadian website reported that Miniso Canada has reached a preliminary agreement with Miniso China to avoid the bankruptcy move. Miniso China has declined to comment on this development.