Singapore franchise axed by Milan Station

Milan Station has terminated the settlement with its Singapore franchisee M C Holdings.

In a voluntary replace disclosure to the Hong Kong Inventory Change this week, Milan Station says the corporate additionally negotiated the top of consignment gross sales at concession counters at Hong Kong’s 4 cruises.

The posh bag and equipment retailer stated the rationale for the terminations of the franchise and concessions is that retail gross sales of luxurious items remained stagnant.

“The termination of the Concession Settlement and the Franchise Settlement shall allow to group to pay attention its useful resource on the extra worthwhile working arms of the group,” Milan Station stated in its replace.

“The group will assess the market situation repeatedly and can think about re-launching the concession and franchise enterprise when the market outlook turns to be promising in future.”

The Singapore franchise settlement dates again to June 2013. The 2 events have agreed that half of the safety deposit of S$180,000 shall be deducted by the franchisor as compensation for inconvenience incurred, with the stability to be repaid. Unsold inventory shall be returned to Milan Station.

The Hong Kong firm says the concession enterprise underneath the Concession Agreements accounted for about 1.eight per cent of the group’s income within the yr to December 31.

The Singapore franchise enterprise accounted for about two per cent of group income.

“The Board considers that the termination of the Concession Settlement and the Franchise Settlement has no materials impression on the prevailing enterprise operation and monetary place of the group.”