The owner of Xin Jian Chang Sdn Bhd, the distribution company embroiled in the socks controversy, has been given 60 days to explain to the local authorities why the factory should not be closed down for breaching its business licence terms. Investigations showed that the company had violated the terms of the business licence granted by the Batu Pahat Municipal Council for a shoe storage and distribution facility.
The factory was involved in the packaging of socks and gloves, which was not included in its licence application. The company owner needs to present the corrective actions they need to take to convince the local authority to maintain their licence. Once the licence is revoked, it will be difficult for the company as they will be blacklisted, making it challenging for them to reapply unless they set up a new company. This comes after the notice of business licence cancellation and business operation closure issued to the factory over its distribution of the controversial socks to KK Super Mart convenience stores