Genting Hong Kong has sold Zouk Group to Malaysian firm Tulipa.
Zouk Group operates the club Zouk as well as the Five Guys burger joint at Plaza Singapura.
Sold to firm owned by son of Genting Hong Kong's boss
Straits Times reported that Tulipa is owned by the son of Genting Hong Kong's controlling shareholder, Lim Keong Hui.
Lim Keong Hui is the son of Malaysian tycoon Lim Kok Thay, Genting Hong Kong's controlling shareholder.
Lim had recently stepped down as Deputy CEO of Genting Hong Kong.
The nightclub Zouk was previously acquired by Genting Hong Kong in 2015. Zouk founder Lincoln Cheng told the Straits Times in 2015 that he believed that the group could take the brand to new markets.
Genting Hong Kong, an affiliate of Genting Group, is headquartered and listed in Hong Kong with a secondary listing in Singapore. It operates Star Cruises.
Genting Hong Kong cash flow troubles
Genting Hong Kong (GHK) has been undergoing a slew of financial difficulties with the Covid-19 pandemic.
On Aug. 28, GHK reported a US$742.6 million (S$1.01 billion) net loss for the first half of the year, as cruises operations were halted due to the pandemic, according to Edge Markets.
Earlier in July, GHK also disclosed that it has suspended all payments to creditors. ST also reported it also owed US$3.4 billion as of July 31.
The sale of Zouk is part of GHK's efforts to offload "non-core assets" and provide liquidity to the group.
The sale is expected to result in a gain of around HK$6.7 million (S$1.2 million). This amount will be used as working capital.
Top photo via Zouk/FB.