The fast expansion of Miniso's empire in Canada is coming to an abrupt halt, it seems, as the China-based dollar store brand's parent company initiates bankruptcy proceedings.
The self-described "Japanese lifestyle brand," which is headquartered in Hong Kong, only just opened its first Toronto retail store in October of 2017.
It has since been expanding at a clip with at least 13 stores now in the GTA and dozens more across the country, all part of an estimated 500 stores the company said it had plans for in Canada last May.
So what on Earth just happened?
Retail Insider reports that Miniso International Hong Kong Ltd. and Miniso International (Guangzhou) Co. Ltd. filed an Application for Bankruptcy Order in B.C. last week on the grounds that its Canadian division has "been fraudulent in its business dealings by transferring and hiding assets."
Miniso in China is seeking more than $20 million from Miniso Canada, and has reportedly claimed that its Canadian arm has exhibited "a pattern of unethical behaviour."
It is of note that the filing came in just days after government officials in Beijing told a Canadian ambassador Canada would face "severe consequences" for not complying with their directions to release detained Huawei CFO Meng Wanzhou.
Meng was detained by Canadian police during an airport layover on December 1 at the request of U.S. authorities for allegedly violating trade sanctions and has been charged by the U.S. Department of Justice with "conspiracy to defraud multiple international institutions."
If the Canadian companies behind Miniso Canada don't reply to a Notice of Hearing from the brand's Chinese parent company by January 7, the Chinese company will be able to file for bankruptcy on Miniso Canada's behalf to "collect on substantial debts."
by Lauren O'Neil via blogTO
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