Thu, Nov 29, 2007 - Page 12 News List

Report says Sunrise Department Store financially troubled

REBUTTAL The retailer denied it was having financial difficulties and said that its Taipei and Hsinchu stores were operating as normal

STAFF WRITER

Sunrise Department Store (中興百貨) has bounced checks worth NT$300 million (US$9.3 million), affecting nearly 100 of its suppliers, a Central News Agency report said yesterday, without citing a source.

The report said that the department store plans to hold a meeting tomorrow to allay suppliers' concerns.

It said that the retail operator might close half of its store in Hsinchu.

Sunrise denied the report, saying operations at its Taipei and Hsinchu stores remained normal.

The retailer also said it had no financial problems.

The news of Sunrise's alleged deteriorating financial health came after Idee Department Store (衣蝶百貨), an affiliate of the debt-ridden China Rebar Co (中國力霸), failed to attract interest bidders on Monday to help sustain its operations.

Shinkong Synthetic Fibers Corp (新光纖維) submitted the sole bid on Monday, but its offer of NT$750 million was much lower than Idee's floor price of NT$1.8 billion.

China Rebar is expected to hold an extraordinary shareholders' meeting today to decide whether to take Shinkong's offer.

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