Golden Truly closes earlier than scheduled

Golden Truly closes earlier than scheduled

JAKARTA (JP): PT Bima Nuansa Cempaka, the parent company of
the Golden Truly department store chain, has closed its outlet on
Jl. Fatmawati in South Jakarta some weeks earlier than a May 31
agreement.

The sudden closure on May 4 of the Fatmawati Golden Truly,
without prior notice, disappointed its 200 staff and dozens of
customers, who were stunned and upset when they arrived at the
padlocked store up to a number of days after the closure.

In an interview with The Jakarta Post on Tuesday, Bima Nuansa
Cempaka's president, Suryadi Sasmita, said that the outlet was
due to be closed at the end of this month after the company
failed to reach a new agreement with private Bank Internasional
Indonesia (BII), the land owner, over the rental fee of the site.

The company abruptly decided to close the business much
earlier, based on rumors that the employees of the outlet were
about to loot the goods in the Fatmawati store.

"After being informed about the rumor, we immediately sealed
the store on May 4, without making a prior announcement," Suryadi
said at his office on Jl. Gunung Sahari Raya in Central Jakarta.

All Golden Truly's suppliers and tenants, he said, could
collect their merchandise between May 8 and May 15 from 8 a.m. an
5 p.m.

Suryadi did not disclose the settlement deal between his
company and the tenants and suppliers.

He said he initially decided to take over all three Golden
Truly department stores operating in Jakarta from the previous
owner, which he refused to name, in February this year.

Formerly, the business was operated by PT Golden Truly, under
businessman Sudwikatmono. In 1997, the company was operating
eight outlets in the capital.

According to Suryadi, since the Fatmawati building was owned
by BII, his company initially bought two Golden Truly outlets,
respectively located on Jl. Gunung Sahari Raya and Jl. Tendean in
South Jakarta.

The firm finally decided to rent the other outlet on Jl.
Fatmawati from BII.

"BII then offered to sell the store, but the price was too
high," said Suryadi.

The bank gave Suryadi another option, which was a rental deal
three times higher than the going rate, he said, giving no
details on the amount.

While his firm was attempting to bargain for a two-fold
increase in the current price, he was informed that the building
had been sold to another company, which runs the Diamon
department stores, he said.

Suryadi explained that his firm was so far able to accommodate
half of the 200 former employees of the Fatmawati outlet.

"They will be employed at the other two outlets, while the
other half has unfortunately been laid off," he said.

He, however, hoped that the 100 redundant employees could be
reemployed later, immediately after the company completed the
current expansion work at its two stores later this year. (09)