PappaRich Group Sdn Bhd, which is the operator of Malaysia’s PapaRich restaurant chain, has reportedly accumulated unpaid debts of RM37.22 million.
A winding-up petition was filed by investment holdings firm Agathisfour Sdn Bhd on 22nd May. This case will be heard at the Shah Alam High Court on 3rd November.
Another petition, that was filed by Chen Khai Voon on 15th May, is scheduled to be heard on 21st September. The founder of KVC Industrial Supplies Sdn Bhd owns shares in PappaRich Group as well as Agathisfour.
According to The Edge, PappaRich Group “had total assets of RM25.85 million which is less than its total liabilities of RM29.48 million”. The company’s profits has been dropping since 2012 and its net loss came up to RM11.93 million in June 2018.
Meanwhile, PappaRich Malaysia hasn’t been faring well either. It made a net loss of RM536,547 for FY18, as compared to a net profit of RM1.36 million in FY17.
To date, there are a total of 125 PappaRich restaurants around the world. 83 of them are in Malaysia, with 7 in Singapore. The franchise is also available in other countries such as Australia, China, Indonesia, New Zealand, South Korea, Taiwan, and more.