KUALA LUMPUR (April 25): Garment retailer Padini Holdings Bhd (KL:PADINI), which is under probe by the Malaysian Anti-Corruption Commission (MACC), said that based on information currently available, the investigations involve certain external counterparties, who are not employees, officers, or part of the group’s management.
As a result of the investigations, certain bank accounts belonging to the company were frozen pursuant to an order issued under Section 44(1) of the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.
In a statement on Saturday, Padini said, “The company wishes to emphasise that, based on information currently available, it is not aware of any allegation or wrongdoing on its part and understands that the freezing order is a procedure taken in the course of the investigation.”
The company went on to say that it has commenced an internal review to assess the circumstances surrounding this matter and to “ensure that its policies, procedures, and controls remain robust and effective”, and has engaged external legal counsel to advise on the matter and is taking steps to unfreeze the affected accounts.
“Padini wishes to clarify that the company’s day-to-day operations remain fully functional and uninterrupted, with business continuing as usual,” it added.
On Friday, Padini had clarified that the accounts which were frozen were not actively used for day-to-day operations, and that it had access to other banking facilities to support its garment business.
“The freezing of these accounts is not expected to have a material financial or operational impact on the group,” the company said on Friday.
For its financial year ended December 2025, Padini chalked up net profit of RM61.7 million on the back of RM885.1 million in revenue. In contrast to a year ago, net profit dipped by an 18.63% quantum, while revenue dipped by 3.66%.
Padini’s stock shed two sen to close at RM1.55 last Friday, translating to a market capitalisation of RM1.88 billion. Since end-February this year, the company’s stock has shed 22.5% of its value.