Creditors of Miniso’s Australian business have overwhelmingly voted in favour of a proposed Deed of Company Arrangement, which will see 30 of its 32 stores across Australia remain open and up to 100 staff keep their job.
While creditors claims topped $18 million, this amount would have ballooned to $49 million had the business collapsed due to the impact of lease terminations.
“It’s a great outcome, and it shows that a voluntary administration done the right way can provide a platform for a business like Miniso to reset and trade profitability off the back of Covid-19 trading conditions,” said administrator Philip Campbell-Wilson.
“It needed the support of franchisees, employers and commercial landlords alike, which was greatly appreciated throughout the process.”
As part of the restructure, administrators made deals with landlords such as Scentre Group and Vicinity Centres to achieve better leases moving forward, while also closing two unprofitable stores in Southland, Victoria and Merrylands, NSW, as well as its head offices in Sydney and Melbourne. The business will be run remotely from its headquarters in China until business conditions improve.
Miniso director Wing Kin Yip said the restructure has enabled them to retain the majority of their stores, and now has plans to open a further 15 stores by the end of 2021. Miniso operates 3500 stores across 79 countries.