It was forced to exit the business due to competition from the Orchard retail store.
Epicentre Holdings' subsidiary EHL sold all of its four Apple reseller stores in Singapore for $516,275 to Elush T3. Both brands are in a similar business under the brand iStudio, which began operations in 2008.
According to an announcement, EHL sold its four outlets in ION Orchard, Wheelock Place, Marina Bay Sands, and Bugis Junction. It also granted Elush the licence to use the trademarks Epicentre and Liveout Loud for free. They were previously limited to only EHL and the online store in Singapore.
Epicentre explained that it faced a challenging business environment against other Apple Premium Resellers (APR) and from the new Apple retail store at Knightsbridge, Orchard. Sales have been affected by the opening of the latter, it said.
Moreover, EHL’s status as a reseller expired in April and was not renewed by Apple. This will further hit its sales and would cause it to incur further renovation costs for its outlets due to its non-renewal status.
"Without the renewal of the APR status, the Seller will not be able to obtain its stocks directly from Apple. If the Seller were to obtain the stocks from other Apple Authorised Distributors, it would mean higher cost and potentially lower profit margins," it added.
It expects losses worth $390,000 after the transaction.
Meanwhile, the company will keep its Apple retail stores in Malaysia and its lifestyle and wellness business in Japan focused on hair removal and skin rejuvenation.
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