Malaysia-based Vertice disposes stake in Kumpulan Voir for $2.08m

Its fashion retailing business has recorded net losses since 2017.

Malaysia-based Vertice Berhad, which mainly focuses on construction business, is selling its 40% interest in local fashion brand and retailer Kumpulan Voir for $2.08m (RM9m) due to market challenges, the company said in a bourse filing.

The company said that it is selling Kumpulan Voir to Malaysian investment holding company Distinct Seasons and focus on its construction business as the brand has seen a decline in its financial performance due to the pandemic restrictions and other factors. The retailer has recorded net losses since 2017, Vertice said.

“The Group had faced various challenges as a result of stiff competition from international brands and other established brands in the local market, changing consumers’ taste and preference as well as rising operating costs,” the company said.

Vertice plans to use the funds from the disposal mainly for its working capital.

Upon completion of the proposed disposal, Kumpulan Voir will cease to be an associate company of Vertice, the company said.

Vertice previously entered into a principal share sale agreement with Seow Khim Soon, Kumpulan Voir’s director, for the disposal of 60% interest in the retailer for $3.79m (RM16.4m) as the company faced limited growth in its fashion retailing business.