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FINANCIAL NEWS
Nakheel cancels business with Auchan
08 Jan 2011
(MENAFN) Leandre Boulez, a director of Auchan, said that the Dubai-based Nakheel withdrew its offer for a cooperation project with the French hypermarket chain Auchan because of current economic limitations, reported The National.
Boulez said that the original plan was to open fifty five Auchan stores in the Gulf region. However, the company had to close its branch in Nakheel’s Dragon Mart by the end of 2010 because Nakheel stated that it does not plan to go further with the joint ventures.
Boulez added that plans were set for investing $800 million over the course of ten years for launching fifteen hypermarkets and fourty supermarkets supermarkets in the Gulf. However, the Dubai developer told Auchan it did not want to proceed with plans because of concern over revenue performance.
It is worth noting that Nakheel is undergoing major challenges after the global financial crisis. It was announced earlier this month that the company had been negotiating debt restructuring with most of its creditors.
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