Hero needs Rp 100b to renovate outlets<\/p>\n
JAKARTA (JP): The country's retail chain PT Hero Supermarket
\nwill need around Rp 100 billion (US$6.66 million) in fresh funds
\nto renovate its damaged outlets in greater Jakarta, the company's
\ntop executive said here yesterday.<\/p>\n
Hero's president Ipung Kurnia said six of the company's 71
\noutlets were burned and another 10 were badly damaged during the
\ntwo-day riots in mid-May.<\/p>\n
He said that the total estimated loss due to the massive riots
\nwas Rp 90 billion, the majority of which was covered by
\ninsurance.<\/p>\n
"We have no problem with losses due to the riots because it
\nwas covered by insurance," he said.<\/p>\n
Looting, rioting and arson hit the capital on May 13 and 14,
\nwith hundreds of stores and shopping centers being damaged,
\nburned or looted.<\/p>\n
Ipung said that eight of the damaged outlets had already
\nresumed their operations.<\/p>\n
"We have to immediately resume outlet operations to cater to
\nconsumer demand," he said.<\/p>\n
Ipung said that the impact of the rioting and looting on the
\ncompany's operations was not as severe as that resulting from the
\ncountry's economic crisis.<\/p>\n
"The monetary crisis is a real blow to our company. We are
\nfacing a difficult time in 1998," he said.<\/p>\n
But Hero's chief financial officer James W. Rush said that
\nsales would remain stable for the rest of the year despite the
\neconomic crisis.<\/p>\n
"There is significant growth in sales," he said, adding that a
\ndecline in consumer purchasing power would not have a big
\nimpact on the company.<\/p>\n
Hero booked an 11-percent increase in net sales to Rp 1
\ntrillion last year from Rp 904 billion in 1996.<\/p>\n
The company reported net sales of Rp 342.7 billion in the
\nfirst three months of this year, up 35 percent from Rp 253.8
\nbillion over the same period last year.<\/p>\n
Ipung said that the company had a total $41 million in foreign
\ndebt of which 56 percent was hedged at an exchange rate of Rp
\n3,000 and Rp 3,500 to the U.S. dollar. (aly)<\/p>",
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