Lotte Mart’s losses in China mount
[THE INVESTOR] Losses incurred by Korean retail chain Lotte Mart from business suspensions in China are being compounded by salary payments to employees, industry sources said on April 20.
Lotte Mart, a highly successful affiliate of Lotte Group, had to temporarily close 74 of its 99 shops in China in February after local authorities suspended them for violating fire safety regulations. Another 13 have shut down voluntarily.
Officials at Lotte Mart’s China business say they have fixed the cited problems and requested re-inspection, but Chinese authorities are not responding. Business losses have neared 200 billion won (US$175.47 million), Lotte estimates.
The losses have are more painful because the company has to pay for some 13,000 Chinese employees at Lotte Mart stores, who are being paid their full salaries for the second month in April despite not working.
By Alex Lee and newswires (email@example.com)