ST criticised for jumping the gun on Cotton On Asia ‘closure’ report

SINGAPORE: Singapore’s national broadsheet, The Straits Times, is facing criticism for its role in spreading inaccurate claims that Cotton On stores across Asia were shutting down, after publishing the report without verifying the underlying facts.

The controversy stems from a Government Gazette notice issued on Monday (March 30), which referred to the winding up of Cotton On Asia. The notice detailed an extraordinary general meeting held via video call on March 25, during which PwC Singapore was appointed as liquidator. A separate notice also invited creditors to submit claims or outstanding debts.

Several media outlets reported on the notice, suggesting that Cotton On’s retail operations in Asia were being closed. However, the Australian retail group moved quickly to correct the narrative.

In a statement released on Tuesday (March 31), the company said the reports were misleading and clarified that it has no intention of exiting the Asian market.

“There have been misleading media reports suggesting that Cotton On stores operating in Asia are being closed. This information is incorrect, and we have no plans to exit the Asia region,” the company said.

It further explained that the entity being wound up—Cotton On Asia—was an inactive holding company that neither operated stores nor employed staff. The company emphasised that the move would have no impact on its customers, employees, suppliers, or retail operations in the region.

Cotton On Singapore, a separate entity, continues to run the brand’s retail business locally.

While multiple outlets had carried the initial reports, scrutiny has been particularly intense on The Straits Times due to its standing as the flagship publication of Singapore Press Holdings (SPH). Critics are especially unforgiving as SPH Media Trust is receiving government funding to the tune of almost one billion dollars.

Veteran journalist Bertha Henson is among those calling The Straits Times out. Asserting that “ST should admit it was one of those who printed ‘misleading’ report,” she asked, “Goes to show how due diligence has to be done than just rely on words on a page. No apology?”