Lotte GRS exits Indonesia as it reels from pandemic Franchise operator’s Indonesian operations in process of being liquidated
Translated by Ryu Ho-joung 공개 2021-04-14 07:39:21
이 기사는 2021년 04월 14일 07:33 thebell 에 표출된 기사입니다.
Lotte GRS, which operates the burger chain Lotteria, is retreating from the Southeast Asia market as the Covid-19 pandemic took a toll on the company’s overseas business.The Seoul-based company is in the process of liquidating PT Lotteria Indonesia and is also effectively discontinuing operations at Vietnam Lotteria, industry sources said.
The two subsidiaries are temporarily held by Lotte Corporation, the holding company of Lotte Group, instead of Lotte GRS due to legal reasons as the conglomerate revamped its governance structure with a shift to a holding company system in 2017.
It became possible in January to transfer shareholdings in PT Lotteria Indonesia and Vietnam Lotteria back to Lotte GRS. However, they are still placed under Lotte Corporation because both the burger chain operator and the two subsidiaries took a severe hit during the pandemic.
PT Lotteria Indonesia, which has more than 20 stores in the country, recorded a net loss of 7 billion won ($6.2 million) in 2020. It is in the process of being liquidated, with Lotte Corporation having written off its equity investment in the unit last year to reduce the book value to zero.
Vietnam Lotteria also made losses last year, and Lotte Corporation determined the impairment of its equity investment in the business, reducing the book value from 26.8 billion won to 15.6 billion won.
Apart from the two overseas subsidiaries, Lotte GRS invested 15.5 billion won last year to establish a new subsidiary in Vietnam that supplies raw materials with ambitions to expand its presence in the region. However, its growth plans also hit a snag due to the ongoing pandemic.
Lotte Group said Vietnam Lotteria can be transferred to Lotte GRS but added that the timing could be delayed because its business situation is not good. (Reporting by Hyo-jeom Jun)
< 저작권자 ⓒ 자본시장 미디어 'thebell', 무단 전재, 재배포 및 AI학습 이용 금지 >
best clicks
최신뉴스 in 전체기사
-
- 에스텍파마, 폴라리스AI파마로 '새 출발'
- 나무가, '공정 자동화 전문가' 이동호 대표이사 선임
- CJ그룹, 글랜우드PE에 판 CJ올리브영 지분 되사온다
- 고려아연, 강남 영풍빌딩 떠난다…행선지는 종로구
- 태광·트러스톤, 대타협…주주제안 모두 수용
- 송영록 메트라이프 대표 "본사 차원 MS AI 활용 논의"
- [저축은행 이사회 돋보기]SBI저축 사내이사진, 홀딩스 영향력 '주목'
- [보험사 IFRS17 조기도입 명암]라이나생명, 보장성 집중해 쌓은 킥스 300% '철옹성'
- [보험사 IFRS17 조기도입 명암]MG손보, 대체투자·실적 악화로 킥스비율 하락세
- [보험사 IFRS17 조기도입 명암]미래에셋생명, 이유 있는 자신감…순익·지급여력 껑충