Parkson’s profit warning

THE profit warning from retailer Parkson Holdings Bhd’s subsidiary in Hong Kong earlier this week gives rise to the question as to whether the company should have been prudent in declaring its results in previous years.

The profit warning came about after a legal suit that was initiated in 2012 between Parkson Retail Group Ltd (PRGL) and the landlord of its plaza in Beijing where it had operations. The dispute surrounds the landlord wanting back a portion of the plaza where PRGL was the tenant.