Defunct Indian retailer Subhiksha is reportedly planning to reopen some stores under a franchise model, exactly one year after the discount supermarket chain announced it was in“sudden collapse”.
At least two closed Subhiksha stores in Chennai are currently being renovated, India’s Business Standard reported this week.
Unnamed sources told the Standard the stores would be reopened under a franchise arrangement. The company’s managing director R Subramanian has so far offered no comment.
Subhiksha announced in early February last year it was in “sudden collapse” under the crushing weight of debts, following months of allegations of unpaid rent and wages.
The company had stated it needed Rs3bn (US$64.7m) to get back on its feet, but with creditors refusing to lend the retailer any more money, Subhiksha attempted tosell off equityand negotiate repayment plans with lenders. Both attempts fell flat.
