Metrojaya closing outlet in Berjaya Times Square

Department store Metrojaya Bhd (9725) will close its outlet in Berjaya Times Square next week, three years after moving in as an anchor tenant.

Metrojaya, which occupies 114,000 sq ft of space at the Kuala Lumpur mall, will close its doors at the end of operating hours on Sunday and move out by month-end.

It will be the second time a retailer is leaving Berjaya Times Square. The UK's leading multi-category retailer, Debenhams, exited the mall and the country in August 2006.

Metrojaya chairman Datuk Ahmad Khairummuzammil told Business Times that its exit was part of a rationalisation exercise.

"This is purely a business decision. We feel we can do better if we focus on our other existing stores," Ahmad said, adding that it was leaving at the end of its three-year tenancy agreement.
While the outlet is profitable, Metrojaya feels that it will be better to focus on its 138,000 sq ft store in Bukit Bintang Plaza, located a stone's throw away. It plans to spend RM9 million to renovate this outlet.

Metrojaya will hold a sale from now until the closing of the store.

The store opened officially on November 21 2006, taking over the space vacated by Debenhams.

Berjaya Group's BTS Department Store Sdn Bhd had the franchise for Debenhams, but the deal was mutually terminated after three years when the business proved to be not viable.

Metrojaya, a RM400 million company, operates five other department stores apart from the one in Bukit Bintang Plaza as well as four MJ Fashion Concept Stores.

It also operates speciality store Living Quarters, Somerset Bay, East India Company and Reject Shop.

The management of Berjaya Times Square did not return calls from Business Times.

However, a quick check with the mall's leasing department revealed that it had not yet secured a new tenant for the space.