In a surprising turn of events, the Chinese-owned “Japanese lifestyle retailer” Miniso, has been swept up in claims of bankruptcy.
Miniso Canada’s parent company, Miniso China, filed an Application for Bankruptcy Order in the Supreme Court of British Columbia earlier this month.
In the application, Miniso Canada’s parent company claims that the Canadian division has been “fraudulent in its business dealings by transferring and hiding assets.”
According to the application, Miniso Canada owes Miniso China over $20 million, which they’ve been trying to collect with no success.
In addition to the funds owed, the parent company alleges that since Miniso Canada’s launch, there has been a “pattern of unethical behaviour.” This includes the alleged transfer of intellectual property rights, and the continued use of the Miniso trademark in Canada, which was terminated some time ago.
With word spreading like wildfire, Minso Canada has released an official response to bankruptcy concerns.
The Miniso Canada bankruptcy response was shared through their social media. This is what they had to say:
Miniso Canada notes several articles in the news media discussing the bankruptcy application against Miniso Canada by Miniso China received December 12, 2018. These news reports contain information that is either inaccurate or not true. Miniso Canada and Miniso China have reached a preliminary agreement on December 13, 2018 to settle their business issues and are currently in the process of finalizing the details. Miniso Canada will continue to provide quality products and services to Canadian consumers.
You can see the official Miniso Canada bankruptcy response on Instagram.
In it, Miniso Canada claims that recent news regarding bankruptcy are inaccurate or false. However, based on wording about reaching a “preliminary agreement,” it’s fair to speculate that there was some trouble brewing between the two branches of Miniso.
The note ends with an invitation to speak to Miniso Canada’s public relations team.
The official statement offers assurance that Miniso Canada will continue to operate amid bankruptcy rumours.
While Miniso Canada has made headlines in the past, the bankruptcy allegation has been the retailer’s most controversial — and surprising — headline yet.
When the Japanese-inspired Chinese retailer launched in 2017, many news outlets claimed that Miniso Canada would disrupt Canada’s dollar store market.
If things continue as previously planned, with vows to open 500 stores nationwide by the end of 2020, the landscape is in for a shakeup. But if Miniso Canada’s alleged debt rings anywhere near true, we would be surprised if consumers continue to see stores open as quickly as promised.
We’ll keep you updated on the story as it progresses.
Featured image: Instagram/@miniso.canada