UK’s leading multi-category retailer Debenhams and Berjaya Group’s BTS Department Store Sdn Bhd have mutually agreed to terminate their franchise agreement as the business has proven to be not viable.
The outlet at Berjaya Times Square in Kuala Lumpur will close its doors in mid-August.
“We entered into a mutual agreement (with) Debenhams to terminate the relationship,” Berjaya Times Square Sdn Bhd chief marketing officer Mary Goh told Business Times.
“It (the business) was not profitable,” Goh added.
“Metrojaya, which has a greater positioning will be synergistic and be positive for the whole shopping centre,” she said on the new occupant that will take over Debenhams’ space at the mall.
Debenhams opened in November 2003 through a franchise agreement with BTS Department Store Sdn Bhd, a subsidiary of Matrix International Bhd, a company controlled by tycoon Tan Sri Vincent Tan Chee Yioun.
Earlier reports indicate that BTS invested RM30 million in a smart partnership with Debenhams Plc from the UK to bring the British retail chain store to Berjaya Times Square. The retailer occupied some 100,000 sq ft of retail space.
According to the Debenhams website, it has 29 international franchise stores in 15 countries outside the UK and Ireland.
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