KUALA LUMPUR, April 13 — Premium Japanese-inspired bakery The Loaf has abruptly closed its business for good after its Malaysian launch in Langkawi by former prime minister Tun Dr Mahathir Mohamad in 2006.

Local Chinese daily, Oriental Daily, said the bakery which produced expensive bakery products and pastries posted a closure notice at their Sogo KL outlet yesterday.

In the notice dated April 9, the bakery thanked customers for their support the past 12 years and added that all branches nationwide would also be closed.

"I know this is not the only branch that has been affected as branches in KLCC, Pavilion Kuala Lumpur and other locations have all simultaneously shuttered on the same day.

"The closure came as a surprise because business was good but I believe many know who runs the company,” an unnamed bakery worker was quoted saying.

The staff interviewed claimed to have heard a new owner had bought over the bakery, but Oriental Daily said it was unable to verify the claim.

The news report also cited an unnamed director of The Loaf distancing the bakery’s operations from any hands-on management by Dr Mahathir, who is now chairman of the Opposition Parti Pribumi Bersatu Malaysia and the Pakatan Harapan pact and is expected to make a run in the coming 14th general election set for May 9.

The nameless director was also reportedly asked if Dr Mahathir was a major shareholder of the bakery, but he said the 92-year-old only founded the business.

"We are in the midst of assessing our financial situation to repay our creditors and we would be organising a press conference in the future to clarify the matter,” the director was quoted saying, without commenting further.

Many prominent political, former government and business public personalities had attended the launch of The Loaf at Pavilion Kuala Lumpur in January 2008.

Among the guests were former transport minister Tun Ling Liong Sik, former chief secretary to the government Tan Sri Halim Ali, former Naza Motor Chairman the late Tan Sri Sheikh Nasimuddin SM Amin, Berjaya chairman Tan Sri Vincent Tan and Country Heights chairman Tan Sri Lee Kim Yew.

Celebrity couple Datuk Khalid Mohamad Jiwa and songstress Datuk Seri Siti Nurhaliza were also reportedly present.

The Loaf was set up with a 51:49 share joint venture between M&M Consolidated Resources Sdn Bhd and Motoko Resources Sdn Bhd with its first RM3 million outlet in Telaga Harbour Park, Langkawi when Dr Mahathir was adviser of the Langkawi Development Authority.

During a past interview with the business section of The Star newspaper in 2006, Dr Mahathir said whenever he visited Japan, he would invariably buy bread from a bakery in Tokyo called Johan before returning home.

He said since retiring in 2003, he wanted to try his hand at business and decided to go into making Japanese bread as he considered bread from that country as being of high quality.

"I have always urged people to go into business through joint ventures with foreigners. Now I want to try my hand at both – making bread and (going into) joint venture with the Japanese,” he was quoted as saying in the 2006 interview.