Struggling Dubai retailer Marka had announced $1.5m profit for first nine months of 2018
Struggling Dubai-based retailed operator Marka has expanded losses by 21.8 percent at $80.5 million (AED295.8 million) in the first quarter of 2019 compared to $66m in the same period last year.
The company said in a filing to the Dubai Financial Market 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.
Khaled Bin Kalban, chairman of Marka, said at the time that the company has taken “rigorous steps” in terms of restructuring over the course of the last 18 months.
While it gave no reason for its widening losses in Q1, it said its smallest cash generating units are its restaurants, which include Reem Al Bawadi.
However, it said it has no intentions of discontinuing the brand as it has “an indefinite useful life as it has been active in the market for a considerably long period of time...”
Marka began restructuring in 2017 by selling stores and cutting operational costs and is currently seeking investment partners.
In November 2018, it approved plans to reduce its capital by $122.5m (AED450m).
It came a month prior to the resignation of Marka’s CEO Benoit Lamonerle due to “personal reasons.”
"Until a replacement has been appointed, the management of the company will carry on under the supervision of the board of directors," the company said in a statement at the time.
Marka’s other brands include Italian ice cream café Morelli’s Gelato, Italian street food restaurant Vicolo and jewellery brand Dinh Van.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.