Another supermarket falls victim to bankruptcy
Clubs debts small compared to turnover, sources say
- chain has no intention of closing outlets
In the latest wave of misfortune to hit the supermarket sector, Savemart
in San Gwann was closed down yesterday. The store has reportedly gone
bankrupt and had its doors closed for business yesterday by court marshals,
a move that had taken employees completely unawares, who had reportedly
been taking turns at cashing their paycheques from the stores
tills in order to avoid the banks.
The closure follows hot on the heels of the highly publicised closure
of Supermaster in Mriehel, which had prompted employees to stage a sit-in
protest for their paycheques.
Meanwhile, despite the fact that recent media reports have claimed that
the Price Club supermarket chain, Maltas largest, is also in serious
financial difficulty, sources high up in the chains management
yesterday refuted speculation that it might shut down certain outlets.
Sources told The Business Times, An approximate Lm4 million debt
looks awesome to some. But it isnt when one views the capacity
of the business." They added that more than 80 per cent of Maltas
business community face similar problems.
Sources add that the chain, with an annual turnover in the vicinity
of Lm24 million is here to stay and that the recent closure of Supermaster
had added fuel to the fire of speculation surrounding the chain of late.
Speculation had surfaced Friday evening when news emerged that an urgent
creditors meeting had taken place and that the chain was to offer
creditors equity shares in a potential Malta Stock Exchange equity listing
in return for debt cancellation.