Mary Chia’s subsidiary to liquidate celebrity hair salon VS Monsoon

A SUBSIDIARY of Mary Chia Holdings : 5OX 0%, along with its joint-venture partner, will be liquidating four joint-venture companies under the Monsoon Hairdressing group, which includes well-known celebrity hair salon VS Monsoon.

The creditors’ voluntary liquidation of Monsoon Hairdressing group was initiated by its co-owners – Vintage Studio and M2 group – over Monsoon’s inability to continue regular business operations due to its liabilities, said the Catalist-listed beauty and wellness company on Monday (Oct 30) in a bourse filing.

Due to Monsoon’s “persistent inability to meet its financial obligations in a timely manner”, M2 group, the wholly-owned subsidiary of Mary Chia Holdings, has decided against allocating further capital to the business to safeguard its own financial stability.

The filing said: “In light of this situation, the joint-venture companies, burdened by their liabilities, cannot continue their business operations; the sole director of the joint-venture companies has decided that the entities be placed into provisional liquidation, pending their eventual liquidation.”

Wong Joo Wan and Tina Phan Mei Ting of Alternative Advisors were on Monday appointed as joint and several provisional liquidators for Monsoon Hairdressing group.

An extraordinary general meeting and a creditors’ meeting of M2 group will be convened on or before Nov 29, 2023 to vote on resolutions regarding the move by the owners to voluntarily liquidate Monsoon Hairdressing group, and to confirm the appointment of Wong and Phan as joint and several liquidators.

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M2 Group had, back in October 2000, bought an 80-per-cent stake in the five companies under the Monsoon Hairdressing group for about S$3 million from Monsoon’s founder and celebrity hair stylist, Addy Lee.

In February this year, under a joint-venture partnership, M2 Group sold half of its shares – but only in four of the five companies under the Monsoon label – to Vintage Studios, a hair-salon services provider. This was done to improve the performance of the four companies under Monsoon Hairdressing, “given Vintage’s vast experience and expertise, as well as industry know-how”.

In May this year, M2 bought the remaining 20 per cent of Monsoon from its vice-president, Siew Chin Juin.

Shares of Mary Chia closed flat at S$0.029 on Monday.