The Covid-19 pandemic at this point has shaken many countries’ economy and as a result of this, various industries have suffered losses and had to let go of their employees.
2020 is indeed a tough year and it has proven to be a roller coaster ride for many corporations. To keep you updated on the latest happenings, we’ve compiled a list of businesses that are currently facing shut down due to the pandemic.
Some of us might remember purchasing blouses, t-shirts on Mother’s or Father’s Day at Esprit to give them as gifts for our parents. But, the fashion chain has announced that it will be closing all 56 of its stores in Asia outside mainland China.
According to the Star, the firm told the Hong Kong Exchange on Monday (April 27) that the shops in Singapore, Malaysia, Taiwan, Hong Kong and Macau will be shut possibly by June 30 as it tries to meet the challenges posed by the coronavirus pandemic.
Possible closing date: 30 June 2020
2. G City Club Hotel
G City Club Hotel Sdn Bhd has been in the hotel industry for over a decade and they are now shutting down all of their hotel operations as a result of low occupancy rate in a statement yesterday (29 April).
According to The Star, G City Club Hotel said the decision to cease operations was a direct result of low occupancy suffered in the past few years because of increased competition from new hotels and the proliferation of homestays in the Kuala Lumpur City Centre (KLCC) area.
However, the pushing point eventually was Covid-19, the forecast of 18 months before normalisation of the global economy and the low travel confidence induced by the pandemic that had made the management to review their decision.
3. Blu Inc Media
Our trips to salons will not be complete without browsing through familiar magazines such as Marie Claire and Malaysian Women’s Weekly.
Sadly, Blu Inc Media, the company that produces these magazines and other well known magazines such as CLEO, Shape, Cosmopolitan and Harper’s Bazaar has announced that they have ceased operations due to challenges arising from the digital disruption and Covid-19.
CEO Datuk Azliza Tajuddin in a statement today (30 April) said that due to falling revenues and an uncertain future, the company has been forced to shut down.
Operations ceased on: 30 April 2020
4. Esquel Group
Esquel Group is a Hong Kong-based textile and garment manufacturer. They have established their presence in Malaysia for over 50 years.
According to New Straits Times, the company, which touts itself as the world’s largest woven shirt-maker, is expected to part ways with over 2,000 of its Malaysian staff in Penang and Kelantan.
“With the pandemic situation worldwide keep worsening, we simply do not have enough upcoming orders to sustain EGM’s continued operations,” said Edward Ho, Esquel Malaysia Sdn Bhd’s general manager, in a letter to all Malaysian employees.
Possible closing date: 12 June 2020
5. Ramada Plaza Melaka
This hotel has 294 rooms and is one of the famous hotels located in Melaka. Ramada Plaza Melaka Hotel or Ramada Plaza by Wyndham (previously known as the Renaissance Melaka) has announced it will cease operating on June 30.
According to New Straits Times, the companies’ directors Yang Pang Chee and Yeo Pang Kheng said in a letter that due to the Covid-19 pandemic since January 2020 and the Movement Control Order since March 18, the hospitality industry has been extremely impacted and they are also affected.
Ramada Plaza has been in operation since 1981 and this year marks 39 years for the hotel.
Last working date: 30 June 2020
6. Jazz Hotel
Jazz Hotel has only been around for a year in the Penang hotel industry and it will cease operations today (30 April) due to the ongoing Covid-19 pandemic.
According to NST, in a memo titled ‘Closure of Hotel Business’, it said that the management had taken extensive cost management measures since the virus was discovered late last year (2019).
Prior to the pandemic, the hotel has already been suffering losses for months. Ultimately, failure to get investments and Covid-19 has left the management with no other option but to cease operations and retrench its staff.
The Chairman of Malaysian Association of Hotels (MAH) Penang’s Branch, Khoo Boo Lim has confirmed the hotel’s closure.
Last working date: 30 April 2020
7. BBDO Malaysia
BBDO has closed down its office in Malaysia and cuts staff in Hong Kong as the agency struggles with the economic challenges posed by the Covid-19 pandemic.
According to Campaign Asia, the agency network’s Asia chairman and CEO Jean-Paul Burge said the steps were taken as BBDO prioritises where future demand will be.
“It is clear to us that China is growing in importance both as a market and as a regional hub, whilst Hong Kong and Malaysia are not. We have therefore decided to close our Malaysia office and reduce our Hong Kong presence to a small regional team, and concentrate our creative resources and work from that market into Beijing and Shanghai,” Burge explained.
Prior to closing down, BBDO Malaysia has won many prestigious accolades such as Kancil Awards, AdFest and many more.
In addition to the human impact, there is also a significant commercial impact being felt globally because of the Covid-19 pandemic. Many are now grappling with unemployment and financial struggles. We truly hope that Malaysia will come out of this stronger and there are better times to come.
Please stay safe and take care.
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