Subhiksha seeks renegotiation with property owners
Press Trust of India / New Delhi Jan 20, 2009, 15:55 IST
Hit by the economic downturn, Subhiksha Trading Services today said it will renegotiate rentals with real estate players, amid allegations, by some property owners, of default in rent payment by the retailer.
The retail major is also considering relocation of some of its stores from the 1,600-odd total, across the country due to low sales volume and high rentals.
"Yes, we would consider opportunity to lower rents... about 80-90 stores are under consideration of relocation," Subhiksha Trading Services Managing Director R Subramanian said in an e-mail interview.
Asked about the allegation of non-payment of rents for its stores in Noida and Ghaziabad, he said: "We do not comment on specific property transactions, we cannot comment on whether we have leased a property from anybody and whether any rent is due and what are the reasons for this."
A group of property owners in Noida, however, claimed that Subhiksha has been defaulting on rent payments for the last five months.
"We had a meeting between ourselves to discuss our future course of action as our repeated requests to Subhiksha to clear our dues has not materialised. The company has been promising to either vacate or pay our dues but without any action," a property owner said on the condition of anonymity.
Subramanian said, after achieving high growths for the past few years, the company is now suffering the pangs of the economic slowdown.
"The company has grown rapidly over last two years and like all high growth companies, the company has been in pain due to the sudden collapse of equity markets and tightening of the credit markets," he said, however, adding the government's stimulus package could prove helpful in raising debt to fund its financial requirements.
I am surprised that all news channels are passing on the same story which top mngmnt is giving to them . Why not they go to stores and check that all employees have not received salaries since oct 08 and no official is able to give exact date to employees when they will get there dues or management is waiting everyone to leave on its own so that no dues has to be dispursed by the company and save crores of Rs that way. Can you guys imagine how all people are surviving without money for so long and compromising with management for no fault of theirs.
I am surprised that all news channels are passing on the same story which top mngmnt is giving to them . Why not they go to stores and check that all employees have not received salaries since oct 08 and no official is able to give exact date to employees when they will get there dues or management is waiting everyone to leave on its own so that no dues has to be dispursed by the company and save crores of Rs that way. Can you guys imagine how all people are surviving without money for so long and compromising with management for no fault of theirs.
Subhiksha is nothing but a glorified begger. They have defaulted payments to suppliers, salaries to staff and rent. Economic slowdown has nothing to do with this situation. Subramanian is a fraud
i have been working for another company in the same group. RS is a very nice person and employees will not lose money. He is a tough task master and may have rubbed his business associates like HD Parikh, Nirmal Jain, Venkat, IIT services, Viswapriya financial services, Vishwanathan of Enfield, very badly. But he treats his employees fairly - he extracts work but pays a fair salary and normally on time. This time however it has been delayed for 4 months. This is really rare.
this fraud hasnt paid salary for his employees for the last 4 months.before satyam fraud to be investigated,govt. and other authorities must enquire about this big fraud called R.Subramaniam.
He is a permanant shame for any IIM graduates.he spoiled the career of all his employees.the unlucky ones who left over at subhiksha is struggling to move forward their livelyhood.when ever we ask for salary,this fraud promises a new date,and breaks his word.we got our last salary for the month of Sept 08.
We, the employees of Subhiksha, humbly request business standard to kindly check the facts from the market before making them public. Subhiksha has not paid any rents for the past 5 months, vendor payments for last 6 months and employee payments for the past 4 months. There is no clarity to anyone as to what will happen next. There is not even a single message to employees. Is this the way a company is run?
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