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Marka, the retailer which started restructuring its business earlier this year, after failing to turn a profit since its 2014 listing in Dubai, plans to sell under-performing assets, restructure its debt, and contain costs.
"Over the past few months Marka has restructured its divisions, exited under-performing businesses, and applied a strict cost control program across the company – and we expect to see positive outcomes from these activities during the remainder of 2017 and beyond," Khaled Bin Kalban, the company's chairman said in an e-mailed statement.
"The approval today by Marka's shareholders gives the board of directors and management team a clear mandate to continue with restructuring efforts in order to build a strong future for the company."
Marka has accumulated losses of Dh361.3 million since 2014, the company said in a regulatory filing to Dubai Financial Market, where its shares are traded. .
The company has "taken steps to sell or close the vast majority of fashion and sport brands whilst also undertaking a significant reduction in overhead costs," according to the statement
In August, Marka reported deepening losses for the second quarter, with falling revenues compounded by rising expenses and impairments.
It said that losses for the three months to the end of June this year rose to Dh126m, compared with Dh17.9m in the same period last year, and Dh27.8m in the first quarter of the year.
The company booked a Dh55m property and equipment impairment for the second quarter of 2017, and saw general and administrative expenses more than double to Dh44.8m. Revenues meanwhile fell by about a third to Dh25.5m for the period .
Marka said its remaining debt obligations are in the process of being rescheduled, including talks related to interest repayment terms.
The company, which listed in September 2014, expanded rapidly into retail, food and beverage and children’s entertainment outlets, but has been caught out by falling disposable income.
Marka released its third quarter financial results on Tuesday, reporting a net loss of Dh22 million, an improvement of sorts given the company’s losses of Dh126 million in the second quarter of 2017.
Marka, the first retail-focused company listed on the Dubai Financial Market, has reported total revenue of Dh25.48 million ($6.9million) for the second quarter of the year.
Marka, the first public joint stock retail operating company in the UAE, has announced the appointment of Benoit Lamonerie as its new chief executive officer.
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