Zouk Group will continue its partnership with various Genting projects, despite Lim Keong Hui, son of Genting Group patriarch Lim Kok Thay, this week purchasing the nightclub brand from Genting Hong Kong.
That purchase came just days after Lim stepped down as Deputy CEO and Executive Director of the troubled cruise ship operator, with revelations on Thursday that Genting Hong Kong Vice President Andrew Li was departing with him to focus on his role as Zouk Group CEO.
However, according to an interview with Li in The Straits Times, Lim’s decision to purchase Zouk from Genting Hong Kong was aimed at helping both brands with the 35-year-old heir to the Genting throne keen to expand on Zouk’s 17 outlets globally. Those outlets include two Zouk at Sea day clubs on cruise ships Genting Dream and World Dream, plus the Empire Club at Malaysia’s Resorts World Genting.
“Given the challenges Genting Hong Kong is facing during the pandemic, we thought it would make more sense to take Zouk out since it’s not a core asset, and continue to build the brand,” Li told The Straits Times.
“It was always our vision to build this global lifestyle platform, and over the last four years we’ve made huge strides.”
Originally just a single nightclub in Singapore, Zouk was purchased by Genting Hong Kong in 2015 at the prompting of the junior Lim and has since grown into a diverse lifestyle group whose 17 outlets includes not only nightclubs and day lounges but restaurants and burger bars.
Associate Professor of the National University of Singapore (NUS) Business School, Lawrence Loh, told The Straits Times that removing Zouk from Genting HK – which last week reported a US$743 million half-year loss and suspended all debt repayments – was positive news for all involved.
“While the Zouk sale (for US$10.3 million) will not be able to solve the large debt problem, the proceeds will buy time for Genting Hong Kong to hold on in terms of working capital,” he said.
“And being out of the Genting umbrella, Zouk will be ring-fenced from the restructuring, including even possible creditor actions.”
