Robinsons at The Heeren.
SINGAPORE: After more than 160 years in Singapore, Robinsons is closing its last two department stores at The Heeren and Raffles City Shopping Centre.
Robinsons, which is owned by the Al-Futtaim Group, said in a press release on Friday (Oct 30) the decision came on the back of changing retail buying patterns and weak demand made worse by the COVID-19 pandemic.
Robinsons has begun the liquidation process for the two stores and employees have been informed of the situation, the company said.
The provisional liquidators will now take control of the company’s assets and assess options to realise value in order to maximise returns to creditors, it added.
“Subject to confirmation, the liquidators are hoping the stores will remain open for the coming weeks to facilitate final sales for customers before they are shuttered.”
Employees were informed of the liquidation on Friday and have been assured that the provisional liquidators will also work to maximise returns to them, said Robinsons.
Robinsons management has also ensured that employees are supported with a payment in keeping with the Insolvency, Restructuring and Dissolution Act, it added.
“Further, these payments will be made to them in line with the next payment cycle; well in advance of the usual liquidation process timing which would usually take months.”
Cameron Duncan and David Kim from KordaMentha have been appointed as provisional liquidators.
CHANGING CONSUMER LANDSCAPE
Online shopping has become increasingly popular among consumers amid changing purchasing behaviour and COVID-19 restrictions. Demand for large-scale department store concepts has also weakened significantly, with official data showing a 35.3 per cent drop in retail sales at department stores in August.
“This dual trend has hurt the department store model both in Singapore and globally, and the negative effects of COVID-19 have made its impact more acute,” said Robinsons in the release.
Over the past year, retail behemoths have announced store closures, both in and out of Singapore.
In April, Esprit announced it would close all 56 retail stores in Singapore, Malaysia, Taiwan, Hong Kong and Macau by the end of its financial year on Jun 30. In Singapore, the fashion retailer had 11 stores, including at ION Orchard, Paragon, Suntec City and Jewel Changi Airport.
Earlier this month, H&M said it planned to close hundreds of stores next year as COVID-19 crisis drove more shoppers online.
Robinsons’ senior general manager Danny Lim said that the changing consumer landscape made it difficult for the department store to “succeed over the long-term”.
“We regret this outcome today. Despite recent challenges in the industry, the Robinsons team continued to pursue the success of the brand,” he said.
“We have enjoyed success over the years, and it has been an honour for Robinsons to serve the Singapore market. I am grateful for the dedication of our team, and for the support shown by our customers over the years.”
ROBINSONS TO CLOSE MALAYSIA STORES
Two Robinsons outlets in Malaysia – Shoppes at Four Seasons Place and The Gardens Mall – will also undergo a similar liquidation process.
Earlier in May, Robinsons also announced that its outlet at Jem would close down in August.
Robinsons was founded in 1858 in Singapore by a Philip Robinson and James Gaborian Spicer.
The company operating the store was originally known as Spicer and Robinson, but was later renamed to Robinson and Company in October 1859. It opened its Raffles City store in 2001 and the stores at The Heeren and Jem in 2013.
