After two years battling the economic impact of the Covid-19 pandemic, seafood restaurant No Signboard said in a bourse filing late on Thursday (March 31) that it would be shutting its Esplanade outlet, just when Singapore is reopening its borders.
The Catalist-listed company said that it had carefully considered the option of keeping the outlet open until all Covid-19 restrictions are fully lifted.
However, it may take several more months before travel returns to levels before the pandemic hit, even though the government had recently eased restrictions, such as increasing the maximum group size for dine-ins from five to 10.
This will continue to adversely affect the business of No Signboard's Esplanade outlet, said the company in the filing.
Hence, the board believes that closing the outlet to reduce operating costs would be in the best interests of the company in the light of its current financial situation.
No Signboard will continue to operate its other restaurant outlets, namely Little Sheep Hotpot at Orchard Gateway and No Signboard Sheng Jian at Northpoint City.
"The closure of the No Signboard Seafood Esplanade outlet will allow the group to focus its efforts and resources on operating the group's casual and quick-serve restaurant outlets until further review of the evolving Covid-19 situation," read the statement.
Given that the Esplanade outlet is making losses, the company said its closure is expected to contribute positively to its consolidated net tangible assets and earnings per share for the current financial year ending on Sept 30 this year.
Shares of $ No Signboard : 1G6 0 per cent had been suspended from trading since Jan 24. Its share price last closed flat at $0.031.
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