KUALA LUMPUR: Kuala Lumpur Kepong Bhd's (KLK) subsidiary Crabtree & Evelyn USA (C&E USA), which has filed for Chapter 11 of the US Bankruptcy Code, intends to close some non-performing stores in US.

In a statement issued on July 2, KLK said C&E USA owned the C&E Group's US assets only and the Chapter 11 filing only affected the US operations and not the group's operations elsewhere in the world.

"The C&E Group as a whole remains solvent and able to meet its obligations," it said, in the statement following C&E USA's move to file for bankruptcy protection on July 1.

Under Chapter 11, C&E USA will file a plan of re-organisation with the US Bankruptcy Court. The proposals of the plan would include C&E USA's intention to close some non-performing stores and terminate some real estate leases.

"A committee of creditors will be formed and C&E USA will negotiate with the committee to formulate the details of the plan. The claims of those landlords whose leases are terminated will be settled along with the claims of other creditors in accordance with the plan," it said.