IndiaRetailBiz

Subhiksha, the financially stressed discount retailer, whose 1,600-odd convenience stores have been forced suspended their business operations for want of cash, since January, 2009, opened four of its stores in Chennai during Diwali to sell crackers.

Subhiksha’s used its time tested brand mantra of “low cost” to lure customers to its shops. Many customers, who lined up the shops to buy crackers, were attracted by promotional lines like “Largest Cracker Shop” and “Lowest Price, All Varieties.” Triad Trading Services– a group shell company– was roped in as a franchisee for the purpose.

This year only four outlets could be roped in to sell crackers, though last year their number was as high as 30. As against last year’s sales of Rs 10 crore in 10 days, this year the retailer is believed to have sold crackers of Rs 3 crore in value.

Although, this would have rekindled hopes of reviving beleaguered company’s operations in the near future, probability of this happening is very slim as Subhiksha is facing several petitions seeking winding-up of the company’s operations. Madras High Court (MHC) has already posted dates for hearing of these petitions.