KUALA LUMPUR: Malayan United Industries Bhd (MUI) tumbled almost 24% at midday after its UK-listed high street retailer Laura Ashley Holdings plc filed for administration.
At 12.30pm, MUI skidded 23.81%, or 2.5 sen to eight sen with 7.55 million shares traded.
Laura Ashley, a 35.17%-owned associate of MUI Group, said the Covid-19 outbreak had an immediate and significant impact on its trading, and ongoing developments indicated that this will be a sustained national situation.
“The company’s cash flow forecasts had been unable to secure third-party debt funding and will not be in a position to draw down additional funds from third-party lenders in a timely manner sufficient to support working capital requirements,” it said.
Laura Ashley said it had hired advisers from financial services firm PwC to oversee administration -- the process whereby a troubled company calls in outside expertise to try and minimise job losses.
Laura Ashley has requested for its shares to be suspended from trading on the London Stock Exchange.