The majority shareholders (90%) of struggling Dubai retailer Marka voted on Wednesday to wind it down following several failed attempts at recovering finances.
Investors approved the motion at the company’s general assembly meeting, according to a regulatory filing.
The company, which was the first retailer to list on the Dubai Financial Market (DFM) in 2014, saw its share price drop 90 percent last year due to consecutive quarterly losses. It then had its shares suspended in April 2018 by the Securities and Commodities Authority (SCA).
It began restructuring in 2017 by selling stores and cutting operational costs. It was seeking investment partners and in November 2018 approved plans to reduce its capital by $122.5m (AED450m).
In the first quarter of 2019, however, it had expanded losses by 21.8 percent at $80.5 million (AED295.8 million) compared to $66m in the same period last year.
The company said in a filing to DFM that it saw its revenue for Q1 this year drop 23 percent to $21m, despite having announced a total profit of $1.5m for the first nine months of 2018.
Marka operates brands including Lebanese restaurant chain Reem Al Bawadi, Italian ice cream café Morelli’s Gelato, Italian street food restaurant Vicolo and jewellery brand Dinh Van.For all the latest business 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.
Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.