Retail major Subhiksha, hit hard by the ongoing cash crunch, has decided to shut down a significant number of 1,600 stores across various parts of the country. Just yesterday, Shoppers’ Stop and Hypercity decided to wind up Catalog Retail Business.
Conforming the development, the 11-year old retailer promoted by Chennai based R Subramaniam, stated that Subhiksha is planning to close down nearly 8-10% of its stores as a part of its effort to survive in the ongoing economic slowdown.
The company is fast shutting down the stores due to its inability to pay store rentals and employee’s salaries. Besides, it hardly has any supplies in most of the stores.
The promoters are trying hard to raise Rs 300 crore required to bring back the company into full swing. They are currently negotiating with various retail chains for equity sale. However no deal has happened so far. Azim Premji in his private capacity has invested in Subhiksha.