Hong Kong-headquartered luxury handbag retailer Milan Station has hinted it may return to Singapore.
The franchise agreement with M C Holdings was terminated in February of this year, with some ambiguity over which side precipitated the move.
The retailer said at the time that the reason for the termination was that retail sales of luxury goods remained stagnant.
The Singapore franchise agreement dates back to June 2013. The two parties have agreed that half of the security deposit of S$180,000 shall be deducted by the franchisor as compensation for inconvenience incurred, with the balance to be repaid. Unsold stock will be returned to Milan Station.
In its half yearly report, Milan Station referred to a potential Singapore comeback.
“The group will review the market conditions in Singapore regularly and may reconsider the franchised operation in the country when the market outlook becomes promising,” it said.
The Singapore franchise business accounted for approximately two per cent of group revenue.
Revenue from Singapore amounted to just HK$900,000 (SG$82,250) in the half year to June 30.
Milan Station is struggling to return to profit after being battered by the downturn in luxury spending by Chinese Mainlanders, as our sister site Inside Retail Hong Kong reports today.