MAN WAH HLDGS (01999.HK): US subsidiary Southern Motion files for Chapter 11 bankruptcy
NewTimeSpace News: On 31 August 2026, Man Wah Holdings Limited (stock code: 01999) issued an inside information announcement regarding legal proceedings involving Southern Motion, Inc. The Company completed the acquisition of Gainline Recline Intermediate Corp. in December 2025, and the Acquired Group is principally engaged in the manufacture and sale of upholstered furniture in the United States, operating eight production facilities in northern Mississippi, six of which are leased from the same lessor.
Since the completion of the acquisition in December 2025, the revenue contributed by the Acquired Group accounted for approximately 2% of the Group's total revenue for the financial year ended 31 March 2026. On a pro forma basis, had the acquisition been completed at the beginning of that financial year, the contribution would have been approximately 8%.
Southern Motion, Inc., a direct wholly-owned subsidiary of the Acquired Company that holds interests in the remaining entities of the Acquired Group, is currently involved in commercial disputes with the lessor and certain other creditors. In view of the operating losses of the Acquired Group, and to safeguard the interests of its employees, key suppliers and customers, Southern Motion, Inc. has filed for Chapter 11 bankruptcy proceedings in the United States. Until the disputes are resolved, the Acquired Group will continue to operate its business in accordance with applicable laws.
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