SINGAPORE — Before issuing an alert that car dealership Karz Automobile had shut down, Singapore’s consumer watchdog had tried to contact the company repeatedly and received no replies, and visited the firm at its official registered address only to find it empty.

It was only then that the Consumers Association of Singapore (Case) announced that Karz Automobile had shut down, it said in a statement on Saturday (Nov 23).

Case’s statement comes after it issued an alert on Friday morning that Karz Automobile and another car dealership, Universe Motoring, had suddenly closed, leaving customers thousands of dollars out of pocket.

However, on Friday evening, TODAY found that Karz Automobile was still in operation at West Coast Car Mart Lot 04/05.Karz director Kenny Yeo told TODAY that Karz Automobile had never ceased operations, and that he was shocked to hear about Case’s alert.

In response to queries from TODAY, Case said that it had conducted checks after receiving customer complaints about Karz.

“Upon receiving the complaints from consumers, we had written to Karz Automobile Pte Ltd at their registered address with ACRA (the Accounting and Corporate Regulatory Authority) at 31 West Coast Highway, #01-30, Singapore 117864,” Case said.

“This is also the address as stated in their own invoices and in their own website. We had also written to the company at their official email address.”

There were no replies to either the letters or emails, Case added. 

“We then sent our staff to visit them at their registered official address. Our staff verified that the unit had been vacated and that Karz Automobile Pte Ltd was not operating from that unit.”

Under the Companies Act, companies must have a registered office within Singapore to which all communications and notices may be addressed, Case noted.

The watchdog said that after issuing its statement, Karz had, through its lawyers, clarified with Case that it is operating at another location in West Coast Car Mart.

“This is the first time Karz Automobile has informed Case that they are still operational but from another location,” said Case.

However, Case noted that complaints from consumers remained unresolved, and said that this is of concern as the amount of potential losses to consumers is substantial.

“Since Karz Automobile is still operational, Case expects them to honour their contractual obligations towards their customers. Case will continue to engage Karz Automobile to resolve all outstanding consumer complaints,” the watchdog said.

TODAY has reached out to Karz for comment. 

KARZ’S SHIFT

Mr Yeo told TODAY on Friday that Karz had shifted to its current address from its previous location at #01-30 in West Coast Car Mart several months ago. 

While he had informed some customers of the move, Mr Yeo said he was unable to inform all his customers. However, he added that there had been no change to the company’s office number, and that he had updated the address of his business on online car sales portal sgCarMart after the move.