NAKHON RATCHASIMA: Klang Plaza Co Ltd, operator of legendary local shopping malls in this northeastern province, will close down its branch on Assadang road in Muang district from July 31 due to the ongoing economic slump, the management announced on Saturday.
Pairat Manasilp, deputy chairman of the company, told employees that from late 2019 to now, the Thai economy has slowed down along with trade and the global economy, augmented by the Covid-19 pandemic and worsened by Russia's war on Ukraine and subsequent economic sanctions.
The company tried to withstand the headwinds, he said, but the situation led accumulated losses and lack of liquidity.
The management found it necessary to cease the operation of Klang Plaza's Assadang branch from July 31. The employees will be compensated according to the law, the announcement said.
Klang Plaza was founded by Paisarn Manasilp in 1958. The business started with a book and stationery store, Klang Wittaya. In 1976, it expanded into Klang Wittaya department store, the first shopping centre in the Northeast. In 1986, the Klang Plaza department store opened on Assadang road. Two more branches were later set up, Klang Chom Surang in 1991 and Klang Villa in 2010.
Due to the economic downturn, the company first closed down Klang Chom Surang branch, to be followed by Klang Plaza's Assadang branch at the end of July this year.
Company employees and local people in general said they were shocked and saddened by the announcement.