Shares of apparel retailer Padini Holdings Bhd came under selling pressure on Monday after news emerged that several of its bank accounts had been frozen by the Malaysian Anti-Corruption Commission (MACC) as part of an ongoing money-laundering investigation.
The stock fell nearly 10% in early trading to an intraday low of RM1.40 before recovering some losses. As of 9.39am, shares were trading at RM1.48, down 4.52% from Friday’s closing price of RM1.55, with 8.21 million shares traded.
Over the weekend, Padini confirmed that it had launched an internal review to assess the circumstances surrounding the MACC’s action involving accounts belonging to the company and several subsidiaries.
The group said the freezing order was related to an ongoing investigation involving certain external counterparties linked to the company, and clarified that the individuals involved are not employees, officers or members of Padini’s management.
Padini stressed that, based on currently available information, it is not aware of any allegations of wrongdoing against the company and understands that the account freeze is part of standard procedures during the investigation process.
The company added that it has appointed external legal counsel to advise on the matter and has taken steps to seek appropriate relief, including the unfreezing of the affected accounts.
Padini also reassured shareholders that its day-to-day operations remain fully functional and unaffected, with stores, business activities and corporate operations continuing as normal.
The retailer said it will continue to cooperate fully with the relevant authorities and remains committed to transparency, adding that further announcements will be made if there are any material developments.
