Thailand’s listed property developer PACE Development Corporation has sold its 50 per cent stake in the Japan unit of gourmet food brand Dean & DeLuca to Welcome Co Ltd for $10 million.
After the transaction, Tokyo-based Welcome will own 100 per cent of Dean & DeLuca Café Japan, according to a disclosure made by PACE to the Stock Exchange of Thailand.
PACE said that it would use the proceeds to repay short-term loans and meet working capital requirements.
The developer had acquired the gourmet food brand and its assets in the US and international markets in 2014 for $140 million. It had also promised a 2018 US listing for the brand.
Instead, Dean & DeLuca was reported to have significantly downsized its presence in the US last year. It was also said to be facing multiple lawsuits from irate suppliers over pending payments.
The property developer reported total revenue of 8.8 billion baht ($277.6 million) and a net loss of 5.15 billion baht ($162.5 million) in 2018. The sharp fall in its performance was attributed to headwinds in its property business and the gourmet food and drink segment.