STOCKS | Man Wah Says Southern Motion Files For Chapter 11 In U.S.

Man Wah Holdings said its subsidiary Southern Motion, Inc. is involved in a commercial dispute with its landlord and certain other creditors and has filed for Chapter 11 bankruptcy protection in the United States, according to ETNet. The company said the filing was made to protect employees, key suppliers and customers while the acquired group, Gainline Recline Intermediate Corp., continues to operate under applicable law until the dispute is resolved. Man Wah completed the acquisition of Gainline Recline Intermediate Corp. in December 2025. The acquired group manufactures and sells upholstered furniture in the U.S. and operates eight production facilities in northern Mississippi, six of which are leased from the same landlord. It contributed about 2% of Man Wah's total revenue in the financial year ended March 31, and would have accounted for about 8% of total revenue on a pro forma basis if the acquisition had been completed at the start of fiscal 2026.