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Subhiksha, the discount food and grocery retail chain, is facing a tough cash crunch. The retail chain, which shut down a few hundreds stores across the country, has failed to pay salaries to many of its employees for the last 2-3 months, according to a business daily.According to senior industry officials, the company has not paid many of its employees the salaries of October, November and December. In fact, the employees received September salary towards the end of October.
The company officials have promised that the salaries would be paid soon, but failed to give a timeline. “The store where I was working in Bangalore has been shut down. They have asked me to leave. I am still waiting for my dues. They have promised me the payment but are not giving any time frame,” said a branch manager at a Subhiksha store in Bangalore.
A Subhiksha spokesperson, however said, “We usually do not comment on internal staff issues but as an organisation we meet all our contractual obligations.” He also denied any lay offs in the company.
Over the last couple of months, the company has also shut down a few hundred of its stores on account on non-profitability. But the company spokesperson denied this and said that around 5 to 10 per cent of the stores are shut temporarily. “We are trying to relocate within the same catchments to take advantage of steadily falling rentals in key towns,” the spokesperson said.
source| insidefranchising
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