Miniso Canada Is Officially Filing For Bankruptcy And Is Over $20 Million In Debt
The Miniso parent company is filing a bankruptcy application as Miniso Canada owes them over $20 million.
UPDATE 9:30 PM ET 17/12/2018: Miniso Canada and Miniso China have reached a preliminary agreement to settle their issues, Miniso Canada revealed on social media. Miniso Canada will continue to sell their products in Canada.
Miniso has gained popularity throughout Canada the past year after opening their first Canadian store in Vancouver in the spring of 2017. Since then, Miniso has spread, opening a variety of stores throughout much of Canada which many thought were pretty successful. Yet, in an exclusive report by Retail Insider, it was revealed that the Chinese parent company for Miniso Canada has brought on an application to initiate bankruptcy for the Canadian division as they reportedly owe over $20 million dollars.
Miniso is a Chinese low-cost retailer store which sells a variety of household goods, including cosmetics, stationery and toys. Offering over 2,500 brands that are sold under $35.00, it has become a hot spot for many consumers across Canada. It now operates 48 stores throughout British Columbia, Alberta, Ontario, Quebec and Nova Scotia, and has many more future openings planned.
On Wednesday, the parent company of Miniso International filed an Application for Bankruptcy in the Supreme Court of British Columbia. The Miniso parent company has claimed that the Miniso’s Canadian division has acted in unethical behaviours by hiding and transferring assets throughout the six months. The Chinese parent company claims that Miniso Canada owes them over $20 million dollars.
The brand's $20 million debt was accumulated between Canadian, U.S and Chinese Yaun Renminbi debts as well as additional requests for expenses and interests for these debts that have become accumulated over time.
Repeated demands for payment have been made by the Miniso parent company in China, yet Miniso Canada has been unable to meet these demands within the past few months.
The Miniso parent company has also terminated the rights for Miniso Canada to use the Miniso trade-marks, though the store branding still remains intact throughout Canada.
This hearing is proposed to take place at the Vancouver Courthouse on January 7, 2019 to discuss further actions between Miniso and Miniso Canada. If the Canadian parties do not show up to the hearing, bankruptcy is most likely to be claimed.
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