Miniso Canada (various locations), a discount retailer that’s like a Uniqlo-meets-Muji hybrid, is allegedly facing bankruptcy.
According to a Miniso Group press release issued yesterday (December 17), the Chinese parent companies of the global chain have filed an application in the B.C. Supreme Court to begin bankruptcy proceedings for its Canadian division of variety stores that carry low-cost consumer goods and household items.
The news release further states that Miniso’s Guangzhou, China, headquarters wants to have its Canadian licensee declared bankrupt so a court officer can operate the 50 Miniso stores selling Miniso brand items in Canada.
Miniso Group’s court petition claims that its operations in Canada have been misusing the Miniso trademarks, and owes $20 million in loans and stock shipped to its Canadian outlets.
None of the allegations have been proven in court.
After several news stories on its bankruptcy application broke yesterday, Miniso Canada announced on its social media pages that it reached a preliminary agreement with its Chinese counterpart on December 13, 2018, to settle their business issues, and is currently in the process of finalizing the details.
The discount retailer opened its first store in Vancouver last year, and operates several dozen stores across Canada. It had ambitious plans to expand throughout the country, which included opening 500 Canadian stores within three years.
When Miniso first opened up in the city, it stirred up controversy because it brands itself as a Japanese retailer, even though it is a Chinese-owned and run company.
Mumuso, another discount retailer that has been popping up around Vancouver, sells similar lifestyle products. It has faced the same backlash because while it claims to be a Korean brand, its headquarters are in Shanghai, China.
The Straight reached out to Miniso Canada representatives, but have not heard back. Stay tuned for more updates.More