The Australian fashion retail giant, Cotton On Group, has announced the shuttering of its regional division, Cotton On Asia. This decision comes in the wake of a resolution passed by shareholders that approved the winding up of the business and the appointment of liquidators.
Despite the closure of this regional subsidiary, Cotton On Group has no intentions of withdrawing from the Asian market. Cotton On Australia’s main office has clarified that the liquidated entity was not responsible for operating any stores or hiring employees.
“We have no plans to exit the Asia region,” a company representative stated.
It was further explained that Cotton On Asia was an inactive holding company and its existence was no longer necessary. The closure will not affect customers, team members, stores, suppliers or operations within the Asian region in any way.
Official documents from the Government Gazette reveal that the Singapore-based entity has entered a creditors’ voluntary liquidation. This action was a result of an extraordinary general meeting where members passed a special resolution under the Insolvency, Restructuring and Dissolution Act 2018.
This move is reportedly part of a more extensive restructuring of the group’s corporate setup in Asia. Although the details have not been specified, it is generally believed that such actions are intended to streamline legal structures and enhance operational efficiency across different markets.
Cotton On was first established in Singapore in 2007 and over the years have expanded its brand portfolio. The group now includes a variety of brands such as Cotton On, Cotton On Body, Cotton On Kids, Typo, and Rubi.
The company was founded by Nigel Austin, who still maintains control over the business operations.
What is the reason behind Cotton On Group closing its regional division, Cotton On Asia?
The closure is part of a broader restructuring strategy of the group’s corporate setup in Asia, aimed at streamlining legal structures and enhancing operational efficiency across different markets.
Will the closure of Cotton On Asia affect the company’s operations in the region?
No, the company has made it clear that the closure of this division will not impact customers, team members, stores, suppliers, or operations within the Asian region.
Who founded Cotton On Group, and who currently oversees its operations?
The Cotton On Group was founded by Nigel Austin, who continues to control the business operations.
