Far Eastern Group (遠東集團) said yesterday its Pacific Department Store (太平洋百貨) Chunxi branch in Chengdu in China’s Sichuan Province would reopen today after it resolves a rental dispute with its Chinese partner and building owner Chengshang Group Co Ltd (成商集團).
The department store may resume operations until Nov. 3, Far Eastern said in a filing to the Taiwan Stock Exchange.
However, after that, the department store will go into liquidation, it said.
Under the agreement, Pacific China Holdings Ltd (太平洋中國控股), a Far Eastern Group subsidiary operating department stores in China, will pay a total of 78.5 million yuan (US$12.81 million) annually to Chengshang Group in rent and business profits, which could retroact to 2011.
The two sides have been negotiating over the dispute in the last few weeks since July 15, when Chengshang Group occupied the department store and forced the closure of the store.
“The results are in line with the original contract,” Pacific China said in a statement.
Pacific China has signed a 10-year rental contract for the building with Chengshang Group, which was originally expected to be due for renewal next year.
Pacific China said its development plan in Chengdu will continue, as the company is scheduled to launch a new department store in the same area in December, in cooperation with Longfor Properties Co Ltd (龍湖地產) of China.