KUALA LUMPUR - The operator of Hong Kong dim sum restaurant chain Tim Ho Wan in Malaysia has shuttered its two outlets after incurring heavy financial losses last year.
In a stock exchange filing reported by the Malay Mail Online, food and beverage firm Texchem Resources Bhd, which is based in Penang, announced that one of its subsidiaries, Dim Sum Delights Sdn Bhd had recorded losses of RM895,642 (S$288,000)and " is not expected to turn around in the near future".
In a statement, Texchem said: "The prospects of Dim Sum Delight is very challenging and this situation is not expected to change any time soon. Accordingly, the shareholders of Dim Sum Delight are of the opinion that Dim Sum Delight should cease its business operation to minimise losses."
The company had a 51 per cent stake in Dim Sum Delight.
Texchem added that that it was unable to assess the costs of shutting down the Tim Ho Wan outlets, but would be providing the update in due course.
Tim Ho Wan's outlets in Mid Valley Megamall in Kuala Lumpur and 1Utama Shopping Mall in Selangor opened to much buzz three years ago.
The Hong Kong dim sum chain earned its Michelin star in 2009 at its original 20-seat outlet in Mongkok. It has since expanded to having six outlets in Hong Kong.
In 2013, Tim Ho Wan collaborated with investment company Hersing Corporation to open an outlet in Plaza Singapura in Singapore. Today, the chain has grown to having eight outlets in the Republic. It also has branches in Australia, Indonesia, Thailand and The Philippines.