Debenhams and Berjaya end franchise pact
Posted on: 13/07/2006
Malaysian Business Times reports that UK's leading multi-category retailer Debenhams and Berjaya Group's BTS Department Store Sdn Bhd have mutually agreed to terminate their franchise agreement as the business has proven to be not viable.
The outlet at Berjaya Times Square in Kuala Lumpur will close its doors in mid-August. The new occupant that will take over Debenhams' space at the mall. Debenhams opened in November 2003 through a franchise agreement with BTS Department Store Sdn Bhd, a subsidiary of Matrix International Bhd, a company controlled by tycoon Tan Sri Vincent Tan Chee Yioun.
Earlier reports indicate that BTS invested RM30 million in a smart partnership with Debenhams Plc from the UK to bring the British retail chain store to Berjaya Times Square. The retailer occupied some 100,000 sq ft of retail space.
According to the Debenhams website, it has 29 international franchise stores in 15 countries outside the UK and Ireland. Queries to Debenhams on whether it has exited Malaysia for good, have not been answered. For the financial year ending April 30 2006, Matrix International's net losses widened to RM17.32 million from RM15.68 million in the previous year.
This was despite an increase in revenue to RM389.95 million from RM218.4 million the last time due to lower property sales by Berjaya Times Square Sdn Bhd.
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