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SINGAPORE, April 15 — Homegrown retailer Naiise will go into liquidation soon, after stopping all operations yesterday.
In a Facebook post this morning, its founder Dennis Tay said that he would also file for personal bankruptcy.
The decision comes after the retailer, which is known for selling products by Singapore designers, closed its last Singapore outlet at Jewel Changi Airport on Sunday.
Last week, Tay told TODAY that Naiise “never recovered” from the Covid-19 crisis and has struggled to pay its vendors.
The company, which started off as an online store in 2013, has been plagued with problems over the years.
Complaints of Naiise defaulting on vendors’ payments surfaced as early as five years ago and media reports emerged of employees leaving the company.
In his Facebook post today, Tay said that he had “exhausted” his savings and borrowed heavily from banks to keep the business afloat.
He had also signed personal guarantees for these loans in the hope that Naiise would be able to repay them, however slowly.
“Unfortunately, I am now out of time and options. Today, I made the decision to put Naiise in liquidation. Naiise.com will cease operations entirely at 2359hrs, 14 April 2021,” he wrote.
“In short order, I will also be filing for personal bankruptcy.”
As a business owner, the blame for Naiise’s demise is his alone, Tay added, and apologised to employees that he had had to let go.
“To those who are owed money, I am sorry I failed you all, and for all the inconvenience and distress this has caused. Apologies also to our marketplace sellers for shuttering operations so abruptly,” he said.
In an email to vendors seen by TODAY, Tay said that audit and legal services firm Deloitte and Touche has been appointed as provisional liquidators and that all future communications to Naiise should be directed to the firm.
In response to queries, Deloitte told TODAY that Covid-19 had severely impacted Naiise, which was already facing challenges before the pandemic.
Tay thus had to take the most responsible approach for all stakeholders by placing the company into provisional liquidation given Naiise’s insolvent financial position, it added.
“Mr Tan Wei Cheong and Mr Lim Loo Khoon of Deloitte and Touche were appointed as provisional liquidators only on Wednesday. Given the recent appointment, they are still in the midst of reviewing the company’s affairs.
“We appreciate that this is a difficult time and will provide material updates to creditors of the company as and when practicable.”
TODAY has reached out to Tay for comment. — TODAY