Big Box Singapore (BBS), an indirect wholly-owned subsidiary of TT International Limited, initiated voluntary liquidation proceedings yesterday.
Prior to the commencement of its liquidation, BBS's principal activities were general retail trade under the warehouse retail scheme (WRS), which included selling of goods on the ground floor of the Big Box building and operating supermarkets in the building.
The Big Box building is an eight-storey warehouse mall in Jurong East Regional Centre owned by Big Box, a 51 per cent subsidiary of struggling mainboard-listed consumer electronics retailer TT International.
It was put up for sale in May by receivers and managers of Big Box.
In a filing with the Singapore Exchange yesterday, TT International said: "The significant winding down of the WRS retail activities at the Big Box building as a result of the termination of the WRS has severely affected the operations of BBS."
This has "led to the resultant cash flow constraints of BBS and currently BBS cannot, by reason of its liabilities, continue its business. Accordingly, the directors of BBS have decided to liquidate BBS".
Mr Abuthahir Abdul Gafoor of AAG Corporate Advisory has been appointed provisional liquidator of BBS.
The liquidation of Big Box Singapore is not expected to have any material impact on the core businesses and operations of other core subsidiaries of the group, and will reduce the overall operational costs and expenses of the group, TT International said.
The liquidation of BBS is not expected to have any material impact on the core businesses and operations of other core subsidiaries of the group, and will reduce the overall operational costs and expenses of the group, TT International said.
TT International shares have been voluntarily suspended since Aug 4 last year.