Khaisilk owner closes all stores, recalls products

Khaisilk has closed all stores and recalled products, while the brand owner also withdrew from a TV show about fundraising for startups.

After store number 113 Hang Gai, Hanoi closed for inspection by authorities, by October 27, all Khaisilk brand retail stores had ceased operations.

In Ho Chi Minh City, the main store at 101 Dong Khoi, District 1, has closed and posted a notice saying "We are closing to check and adjust the goods". Previously, another Khaisilk store located in the Lotte Legend Hotel on Ton Duc Thang Street, District 1, also closed from the afternoon of October 26.

Khai Duc Company - the unit operating the Khaisilk brand said that after being inspected by the authorities, the store at 113 Hang Gai (Hanoi) has started accepting product recalls and refunds to customers. In Ho Chi Minh City, the acceptance of returns will take place from November 10 at 34 Vo Van Tan, District 3. The recall will take place from 4pm to 6pm every day, lasting for 30 days.

Khaisilk store at 101 Dong Khoi, District 1, Ho Chi Minh City is closed. Photo: Vien Thong

"Currently, Khaisilk stores in Ho Chi Minh City are temporarily closed for inspection by authorities. Therefore, the company only accepts returns at the address on Vo Van Tan Street. When the authorities have completed the inspection and have an official conclusion, the stores will have a plan to reopen," said a Khaisilk hotline employee.

Along with the controversy about selling silk scarves "made in China" without clearly announcing, Mr. Hoang Khai - owner of Khaisilk has decided to withdraw from the reality TV show specializing in raising capital for startups.

"Recently, businessman Hoang Khai, who is one of the guest investors of the Shark Tank Vietnam program, has decided to withdraw from the program to focus on the group's work," the official confirmation information released at noon on October 28 by the program's organizers stated.

Mr. Hoang Khai appeared at the Shark Tank launch on October 18 in Ho Chi Minh City.

Previously, on October 26, Team 14 of the Hanoi Market Management Department, in coordination with C46, ​​conducted an inspection at Khaisilk store at 113 Hang Gai, Hanoi. Mr. Tran Hung, Deputy Director of the Market Management Department, said that he had discovered commercial fraud and counterfeiting of product origins at this store. The Department confiscated products with signs of violations worth 30 million VND from the store.

Afterwards, Minister of Industry and Trade - Tran Tuan Anh issued a document requesting the Market Management Department to coordinate with the Department of Competition and Consumer Protection to inspect, review and clarify information related to Khaisilk Group selling scarves labeled "made in China".

Khaisilk's crisis began on October 23. At that time, Dang Nhu Quynh's personal Facebook page reported the purchase of Khaisilk silk scarves labeled "Made in China". According to Mr. Quynh, on October 17, his family's company ordered 60 silk scarves at VND644,000 each at Khaisilk store 113 Hang Gai (Hanoi) with a total order value of VND38,640,000. However, after receiving the goods, the company discovered that in the shipment there was a scarf labeled "KHAISILK - Made in Vietnam" and "Made in China". The company inspected the entire shipment and discovered that many of the remaining scarves had signs of the label being cut off at the edge.

In response to the above incident, Mr. Hoang Khai - Chairman of Khaisilk Group later admitted to the media that he "sold 50% of silk 'made in China' in his system" and apologized to consumers.

According to VNE