JAKARTA -- Modern Internasional, the parent company of Indonesia's 7-Eleven franchise operator, on Thursday said it would close all of the unit's convenience stores by June 30 due to "limited resources to support operations."
The announcement comes less than a month after it announced that talks to sell the convenience store unit, Modern Sevel Indonesia, to an affiliate of Thai conglomerate Charoen Pokphand Group collapsed. Modern Internasional's share price remained at a near all-time low of 50 rupiah ($0.004) per share on Thursday with a market capitalization of 228 billion rupiah.
Modern Sevel, which operated 161 7-Eleven stores in Indonesia at the end of last year, pioneered the air conditioned, eat-in style convenience stores in the country in 2009, but has recently struggled to compete with local food vendors and the rapidly growing networks of Alfamart and Indomaret, the country's top two local convenience store chains.
Modern Internasional, owned by Indonesia's Honoris family, also sells medical equipment and Ricoh photocopy machines. The convenience store business, however, accounted for around three quarters of its total revenue of 891 billion rupiah in 2016.
A spokesperson for Modern Internasional did not immediately respond to requests for comment.
Nikkei staff writer Erwida Maulia contributed to this story.