Zhongmin Baihui to close loss-making store in Jiangsu province
ZHONGMIN Baihui Retail Group said on Tuesday that it has decided to close its Nanjing Nanzhan store in Jiangsu province, China.
The S-chip, which owns and operates more than 10 department stores in Fujian and Jiangsu in China, said the store has been unprofitable since its opening in 2012.
"The development of the surrounding area of the store is progressing slower than expected,'' it lamented, adding that its resources could be better deployed elsewhere.
The department store and supermarket sections of the store have ceased operation recently, and the tenants occupying the remaining area are in the process of moving out.
Zhongmin Baihui will hand over the store to the landlord once the place is vacated. It expects a potential gain of about 41 million yuan (S$8.3 million), largely non-cash in nature, from the closure of the store. The gain does not take into account operating losses from the store for the year and potential compensation to be paid to the landlord.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Netflix handily beats subscriber targets, misses on revenue forecast
Meta releases early versions of its Llama 3 AI model
Seatrium unit ordered to pay US$108 million in arbitration over equipment supply contracts
TSMC estimates losses of US$92.4 million due to Taiwan earthquake
Marina Bay Sands Q1 profit surges 51.5% to US$597 million on tourism boom
US: Wall St opens higher as some chip stocks bounce back after selloff