Sri Trang Gloves closes subsidiary over recurring operational losses
Its subsidiary reported almost two years of net profit losses.
Sri Trang Gloves (Thailand) Public Company Limited has decided to approve the dissolution of Sri Trang Responsible Gloves Supply, Inc. (STRG) due to recurring losses from the operation.
STRG is a subsidiary of the company that holds 100% of its shares and was established in the United States. STRG distributed rubber gloves in the United States and other countries with a registered capital of US$1m and a paid-up capital of US$500k divided into 5,000 shares (par value US$1 per share).
In its preliminary financial statement, STRG reported a net profit loss of THB14.50m ($550k) in the year ending December. For the nine months ended September 2023, STRG reported a net profit loss of THB9.41m ($360k).
Sri Trang Gloves does not expect the dissolution of STRG to affect its operation and financial position of the Company. Furthermore, the Company and Sri Trang USA Inc. (another subsidiary of the Company that owns 100%t of its shares) will continue to distribute rubber gloves in the United States.
Sri Trang Gloves expects to complete the dissolution and liquidation of STRG within 2024.