Merchant House International ceases USA textile operations

Merchant House International Limited (ASX: $MHI) has announced the permanent cessation of operations at the American Merchant Inc textile factory in the USA due to sustained losses. The factory recorded a loss of A$3.7 million for the year ended 31 March 2024 and has continued to sustain losses. The closure is scheduled for September 2024, with plans to dispose of the associated land, buildings, and equipment. The Company will approach other major textile manufacturers to identify a potential purchaser of the assets. Following the sale of the assets, the Company intends to seek a voluntary delisting from the ASX and distribute the net funds to shareholders before winding up the Company.

Executive Commentary

The decision to cease operations at the American Merchant Inc textile factory in the USA was a difficult but necessary one due to the sustained losses incurred by the business. The Board is committed to managing this process transparently and will provide further updates as more information becomes available.

Summary

Merchant House International Limited (ASX: $MHI) has announced the closure of its American Merchant Inc textile factory in the USA following continued losses. The company plans to dispose of the associated assets and seek a voluntary delisting from the ASX, followed by distributing the net funds to shareholders and winding up the Company. The Board will keep the market informed as more information becomes available.