Subhiksha pins hopes on FDI to get back into business

MUMBAI: Subhiksha, the Chennai-based retail chain that suspended operations in 2008 after running out of cash, wants to restart full-fledged operations , riding on the possible interest by foreign retailers in the country.

“With the opportunity being provided by FDI, I think we need to resolve the issues with the lenders, hopefully by this fiscal end,” R Subramanian , founder of Subhiksha, said on the sidelines of the Indian Retail Forum on Wednesday.

Earlier this year, the retailer had filed a Rs 500-crore defamation claim against Wipro chairman Azim Premji , who through his personal investment arm Zash Investment bought 10% in Subhiksha — then the largest chain with 1,600 outlets — from ICICI Venture for Rs 230 crore. The deal was done a few months before Subhiksha suspended all operations after it ran out of cash and could not manage staff salaries, vendor payments and bank loans.