This article first appeared in The Edge Financial Daily on November 6, 2019

KUALA LUMPUR: Kim Hin Joo (Malaysia) Bhd, the exclusive sole franchisee of mother and baby products chain Mothercare in Malaysia, said Mothercare plc’s restructuring is not expected to adversely affect the company’s business here and that Mothercare is only putting its UK retail business into administration.

“We will continue to operate our business operations as usual,” Kim Hin Joo said in a statement yesterday.

It was responding to news reports that Mothercare had appointed administrators for the UK chain, and had told about 200 employees that their jobs will be terminated as part of the restructuring.

“Based on Kim Hin Joo’s understanding with its franchisor, Mothercare UK will be undergoing a restructuring process, which will result in a segregation of Mothercare UK’s profitable global brand business from its UK retail operations.

“The Mothercare UK’s global brand business remains profitable as it generates over £500 million in revenue each year from over 1,000 stores internationally in over 40 territories in which the Mothercare brand operates, including the Kim Hin Joo business in Malaysia,” it added.

Kim Hin Joo noted that the company’s strategic outlet additions during 2019 included a new Johor flagship store in Mid Valley Southkey Megamall, its first store with the Sunway group at Sunway Velocity Mall in Kuala Lumpur, and Empire Shopping Gallery in Subang Jaya.

Its chairman Pang Kim Hin said the company is also on track to diversify into retailing toys, with its partnership with Entertainer UK.