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KUALA LUMPUR (Oct 9): Utusan Melayu (Malaysia) Bhd is ceasing operations today, according to an internal circular to employees.
In the circular signed by Utusan executive chairman Datuk Abd Aziz Sheikh Fadzir, sighted by theedgemarkets.com, Utusan said the company had undergone its most critical period in its 80-year history and business conditions had deteriorated after May 2018.
The publication said various measures had been implemented to strengthen its position, including offering a voluntary separation scheme (VSS), which was accepted by some 700 employees.
Utusan said it had also disposed of some of its assets to raise funds and maintain its cash flow.
However, it said the daily circulation of the Utusan Malaysia and Kosmo! dailies declined while the RM4 million monthly advertisement target was not achieved, resulting in a critical cash flow situation.
Utusan said apart from delay in paying employees' wages, debts were also accumulated, and the company is now facing various actions from debtors.
The publication said its board of directors had on Oct 7 approved Creditor's Voluntary Liquidation and appointed UHY Advisory (KL) Sdn Bhd as interim liquidator.
Utusan said the final working day for employees was Oct 9 while their employment would end on Oct 31, 2019.
The publication asked its employees to vacate their workstations and return their access cards and office keys to the respective heads of department by 1pm today.
It said a staff briefing would be held at 3pm on Oct 30 at its Main Hall.
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