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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.