Shareholders of Marka, the first retail-focused company listed on the Dubai Financial Market, have backed the company to continue operations as it continues to make large losses.
At its General Assembly meeting, shareholders of the company, which has exclusive rights to manufacture and sell Real Madrid products in the Gulf region, approved the its "continuity of operations", a statement said.
Khaled Jassim Bin Kalban, Marka chairman, said: “The approval today by Marka’s shareholders gives the board of directors and management team a clear mandate to continue with restructuring efforts in order to build a strong future for the company.
"Over the past few months Marka has restructured its divisions, exited underperforming businesses, and applied a strict cost control program across the company — and we expect to see positive outcomes from these activities during the remainder of 2017 and beyond."
In May, Marka announced a new CEO as the retail-focused company continues to report huge losses.
Benoit Lamonerie replaced Nick Peel, who resigned last year after failing to turn a profit since Marka was established in 2014. Peel had said that he would make Marka become profitable by the fourth quarter of 2015.
In its latest full year financials, the listed firm reported a loss of $40.8 million for 2016.
The company reported total revenue of AED294 million, an increase of nearly 37 percent over the full year results for 2015.For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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