KUALA LUMPUR: Metrojaya Bhd is folding two subsidiaries namely East India Company Clothing (Malaysia) Sdn Bhd and Metrojaya Department Stores Sdn Bhd.
Metrojaya parent Malayan United Industries Bhd (MUI) said East India Company and Metrojaya Department Stores had obtained Metrojaya's approval for a voluntary winding-up during their respective shareholders' meeting on May 27.
MUI owns 98.21 per cent of Metrojaya.
The voluntary winding-up was pursuant to Section 439(1)(b) of the Companies Act 2016, MUI said in a filing to Bursa Malaysia last Friday.
"The winding-up of the subsidiaries is part of MUI's continuing rationalisation effort to simplify the structure of the MUI Group.
"In addition, the winding-up will enable the MUI Group to save future costs associated with maintaining these subsidiaries," it added.
Chong Mun Yew has been appointed as the liquidator for the winding-up.
It is learnt that East India Company and Metrojaya Department Stores are now dormant and not the operators of East India Company and Metrojaya chains of outlets respectively.
Based on Metrojaya website, there are three Metrojaya departmental stores in Mid Valley Megamall here, the Curve in Selangor and Suria Sabah Shopping Mall.
It also operates two MJ outlets at Brem Mall in Kepong and Permaisuri Imperial City Mall in Miri, as well one East India Company specialty outlet at AEON Bukit Tinggi Shopping Mall in Klang and one Laura Ashley outlet at Mid Valley Megamall.
According to MUI, the winding-up would not have any material financial or operational effect on the group for the current financial year ending June 30, 2020.
"None of the directors, major shareholders and persons connected with the directors and major shareholders of MUI have any interest, direct or indirect, in the winding-up of these subsidiaries," it added.