UPDATE: Miniso Canada claims to have reached a preliminary deal with its parent company to continue operating its Canadian stores.
Just over a year after initially entering the Canadian market, the parent company for Miniso Canada is allegedly filing for bankruptcy.
According to a report by Retail Insider, the Chinese parent company is claiming that the Canadian division has been fraudulent in its business dealings by transferring and hiding assets.
The report also states that the company is claiming debts owed in excess of $20 million.
It has allegedly retained a law firm to proceed with filing for bankruptcy, which will begin next month.
Retail Insider says that sources are claiming that Miniso’s Canadian division has a pattern of “unethical behaviour.” Also, other sources have speculated that the company is pulling out due to the recent arrest of the daughter of the founder of Chinese tech giant Huawei.
“With a goal of opening 6,000 stores globally by 2020, MINISO’s rapid-fire growth has averaged at 80 to 100 store openings per month,” states the company’s website.
As of Monday, MINISO Canada’s website still states that it “will open between 30 and 50 stores in Canada throughout 2017/2018 with a focus on Vancouver, Toronto and Montreal, and the potential to operate as many as 500 Canadian stores in the coming years.”
With both Chinese and Japanese co-founders, the company is known for selling Japanese-designed household and consumer goods, such as cosmetics, stationery, toys, and kitchenware.
The company opened its first Canadian location in Vancouver last year.
With files from Kenneth Chan