Windance Shopping Center in Hsinchu files for insolvency

The Hsinchu-based Windance Shopping Center (風城購物中心), which was the nation's biggest shopping complex when it started operations in 2003, filed for insolvency protection late last month following two years of financial difficulties.

Some shareholders of the shopping mall's operator, Yung Lian Co (雍聯), applied for corporate restructuring with the Hsinchu District Court on March 26, the firm said in a filing to the Taiwan Stock Exchange yesterday.

Windance chairman Lee Hung-sheng (李宏生) admitted that the mall had experienced a capital gap since its checks bounced in August 2005.

INVESTORS WANTED

Lee is looking for capital injection of between NT$2 billion (US$60 million) and NT$3 billion from domestic and foreign investors, not restricted to department store operators, the Chinese-language Economic Daily News reported yesterday.

The Windance complex, with a total floor area of 360,000m2, was the nation's biggest shopping mall before the Dream Mall (夢時代購物中心), which has a floor space of 399,300m2, was launched in Kaohsiung last week.

Yung Lian has incurred a debt of NT$10 billion, including bank loans totaling NT$8.15 billion as of the end of last year, the report said.

FEWER TENANTS

After financial problems surfaced two years ago, Windance's major tenants, including the Jusco department store and some cosmetics brands, moved out of the complex.

The shopping center now has 150 tenants, down from the original number of over 400, hurting profitability.

Taiwan has 15 major shopping malls nationwide since Far Eastern Group (遠東集團) introduced the concept in 1994 with the launch of the Taipei Metro Mall (遠企購物中心), the Shopping Center Development Council (中華民國購物中心協會) said.