Isetan will not renew Westgate ‘loss-maker’
As announced by the business in an SGX report on Monday (May 6) before business opening, Isetan Singapore is not going to update its “Loss Making” shop in the Westgate Mall.
On 22 Dec. This year JG Trustee (JGT) announced that its rental expired when the two sides were not able to conclude a renewal contract.
“The rationale for the company’s choice not to renew the rental is that both sides are unable to achieve an accord on the rental extension conditions that favor this loss-making shop,” Isetan Singapore said.
The Company is entitled, under the conditions of the rental, to extend the lease for three years by notifying JGT no earlier than six months before the rental expiry.
“The business had talks with JGT about the rental extension, but no consensus was reached between them on the rental extension. So, the firm chose not to cancel the rental,” Isetan Singapore said.
This choice is part of the company’s “continuous evaluation, realignment and strengthening of its activities” to allow stronger implementation among its other business units, the firm said.
The Commission stated that the economic effect of the decision “cannot be assessed fairly on the deadline of the announcement” for the present and future financial years.
At its earlier closing on 2 May, Isetan Singapore stocks opened mildly higher at S$3.16 on Monday, than S$3.10.
Isetan Singapore has approximately 128 million dollars in market capitalization. In 2013, the firm launched its Westgate shop.