Subhiksha to open some stores through franchise model

Discount retailer Subhiksha, which shuttered all its stores almost a year ago, is attempting to revive a few of its stores in Chennai through a franchise model where the franchisees operate the stores under the Subhiksha brand at the front end while a Subhiksha team helps at the back end operations and sourcing.

While the beleaguered retailer itself battles several court cases and winding up petitions, sources in the company say that “instead of waiting for things to evolve” it has decided to start up three stores in Chennai under this franchisee model by early February in the localities of Triplicane, Ambattur and Tiruvanmiyur.

The retailer is in the process of identifying franchisees who can help roll out more stores.

Admitting that credit for the retailer’s brand may be difficult at this stage, the franchisees will operate the stores and stocking on a cash basis to begin with.

The stores will operate on the same discount model that Subhiksha grew its reputation on and will be developed on the tech platform the retailer was evolving before it was forced to shut down with a huge burden of debt.