Bargain-hunting PLA soldiers may benefit from the collapse of Guangnan (KK) supermarkets, with the chain's liquidator seeking to sell remaining stock through five stores on the army's Hong Kong barracks.
Ernst and Young, which has received a court order to wind up the supermarket chain, said it wanted to reopen the PLA outlets to clear $70 million worth of stock.
'The stores inside the barracks are free of land rent, so we can let them continue to operate. We have applied to the PLA for permission but so far they haven't replied,' said a spokesman for Ernst and Young.
The spokesman said the liquidator had retained some former Guangnan (KK) managers and workers to help it in the sale of assets, so there would be no problem manning the five stores.
In the long run, it is hoped that another firm will take over the stores at the barracks. The barracks stores, which only open two days a week, were all closed yesterday but it is thought they will continue to operate despite KK's collapse, which saw the closure of its 34 other supermarkets.
'Although the stores in the barracks are free from land rent, they can only sell to the soldiers. So the investors are still considering it.'
