Subhiksha preparing to re-open in Chennai?

As per a report in Mint, a year after shortage of cash forced Subhiksha Trading Services Ltd to close its nationwide network of 1,600 supermarket stores the retailer is making efforts to revive business. The retailer is planning to start from scratch by reopening a handful of outlets in Chennai.
R. Subramanian, the retailer’s managing director, and unnamed shareholders will fund the re-launch of four to five Subhiksha branded outlets. As per the report N. Saravana Kumar, who owns the property in Chennai’s Thiruvanmiyur neighborhood where Subhiksha opened its first outlet in 1996, confirmed witnessing “activities” at the store.

A notice outside announced sales staff were urgently required for a “popular supermarket”, for salaries of Rs3,600-6,000 per month. Subhiksha’s move comes nearly a year after it asked lender banks to reduce interest rates and allow it more time to return their dues under a corporate debt restructuring plan. Subramanian had then said the firm would need about Rs300 crore to get back into business. But the consortium of banks, which included ICICI Bank Ltd, HDFC Bank Ltd and Yes Bank Ltd, was unable to file a proposal to revive the retailer before an extended July deadline. Subhiksha’s stakeholder then filed a compromise petition in the Madras high court, hoping to reach a settlement with creditors and vendors to whom they collectively owed Rs900 crore. The court dismissed their plea and instead admitted winding up petitions against Subhiksha by Kotak Mahindra and HCL. However, since there is no order against opening of stores and there has been no appointment of an official or a provisional liquidator, there seems to be no legal bar to re-opening stores.