With the list of retail chains continue to grow with lackluster business and reduction of foot falls, Japanese based speciality store Muji is folding under the threat of the pandemic.
Muji which operates multiple stores selling home goods, is filing for bankruptcy to reformat its business and move to a more online focus strategy. The global minimalist brand which operates in Malaysia as well, is looking to take the filling as a way to restructure its operation, close unprofitable stores and manage debts.
“Muji has felt the devastating effects of the Covid-19 pandemic on in-store retail, and as a result will take this opportunity to refocus our efforts in the United States on key regional markets and e-commerce,” Muji CEO Satoshi Okazaki said in a statement.
Even though US has lifted the lockdown, consumer sentiment is still low with many Americans spending less on non-essential items like furniture and clothing. Muji joins a string of retailers like JC Penny, Brooks Brothers and J Crew who have also filed for bankruptcy.
In Malaysia, Muji operates in Sunway Pyramid, One Utama, Mid Valley and other major malls, however as of now the US closure will not affect operations here.