JAKARTA (TheInsiderStories) - The Lippo Group retail company, PT Matahari Department Store Tbk (IDX: LPPF) has closed seven main stores and all specialty outlets after the revenues dropped by 57.6 percent to Rp5.86 trillion (US$298.64 million) and booked a net loss Rp617 billion in nine months, caused of the COVID-19 pandemic. Now, the issuer operates 153 outlets in 76 cities across Indonesia.
The CEO and VP director, Terry O’Connor, said in an official statement, the re-implementation of large-scale social restrictions has forced the company to close several outlets caused of slowing financial performance in the third quarter. To reduce the impact, he revealed, the operator has implemented the cost tightening, which resulted in a decrease of operating expenses by 29.3 percent until September.
Before the pandemic, Matahari planned to open around six outlets during 2020 in Java island and until 2021 the company hopes that there will be an additional 23 new outlets, with the majority in surrounding Java. But due to the current situation, the company postponed the establishment of new outlets and withdrew all 2020 sales targets and profits.
Recently, Greater Universal, unit of Singapore-based Auric Capital officially hold over five percent Matahari shares, after get approval from the shareholders. The buyer is an active investor in the consumer sector led by Andy Adhiwana joined with his father in-law, Stephen Riyadi.
John Bellis, the president commissioner (independent) at Matahari in an official statement, Auric Capital focuses on affordable investment opportunities in Asia and across the emerging markets. The investment company invest in startup directly through seed capital into new ventures, but also through the in-licensing of proprietary technologies for global commercialization.
After decades become publicly listed company in Singapore’ bourse, Riady family, an Indonesia’ conglomeration firm under Lippo Group, made a maiden foray by takeover Sunshine bread maker Auric Pacific Group in 2017. At the time, they have lobbed a S$48.3 million (US$34.94 million) to takeover the food company shares from the market.
There are a lot of retailers close the store because sales are down and increasingly fierce competition between fellow players. To boost their sales, now the retailers entered the e-commerce platform.
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Written by Staff Writter, Email: theinsiderstories@gmail.com
