Premium Japanese-inspired bakery and bistro The Loaf is shutting down after 12 years in business.
The bakery, which produced expensive bakery products and pastries, posted a closure notice at its Sogo KL outlet yesterday, local Chinese daily Oriental Daily reported.
In the notice dated April 9, the bakery thanked customers for their past support and announced that all branches nationwide would also be closed.
The news report also cited an unnamed director of The Loaf distancing the bakery’s operations from any hands-on management by Tun Dr Mahathir who started the business.
Andrew Heng, financial advisory and restructuring provider Ferrier Hodgson’s liquidator, told The Star that the owners of the bakery have chosen to wind down the business.
The Loaf is run by M&M Consolidated Sdn Bhd, a joint venture between Mahathir and Motoko Resources Sdn Bhd. Reportedly, Mahathir holds a 51% stake in the company.
Heng said the owners felt that it was not possible to continue the business following losses for the past few years.
“Basically it was not possible (to continue). There are just too many similar types of businesses and competitors. They are not doing good enough for profit,” he was quoted saying.
Mahathir’s foray into the bakery business started when he used to buy bread from a bakery in Tokyo called Johan.
After his retirement as prime minister, he said he wanted to try his hand at business and decided to go into making Japanese bread as he viewed it to be of high quality.
The Loaf opened its first branch in Telaga Harbour, Langkawi in 2006.
Over 12 years, it expanded to 12 branches, including at KLCC, Pavilion and Sogo malls in Kuala Lumpur and Empire Shopping Gallery, Subang Jaya.