Home>News Center>China

PriceSmart shuts shop after suppliers demand payment
By Liu Chang (China Daily)
Updated: 2005-01-10 00:18

A key chain warehouse of the PriceSmart Membership Shop in Beijing has been closed since Thursday after protests by goods suppliers.

A file photo taken on December 2, 2004 shows police keep the order after suppliers blocked the gate of PriceSmart. [newsphoto]
The move by PriceSmart to shut shop at its key store on Xueyuan Road followed protests by suppliers, nearly 100 of whom picketed the gates in protest at late payments for their goods on Thursday.

Some are owed more than 1 million yuan (US$120,000).

This is not the first time angry suppliers have protested against PriceSmart.

On Sunday, the Jiazeng Company blocked gates with seven motor vehicles and more than 50 people, the Beijing Youth Daily reported.

A vice-chairman of the Jiazeng company was arrested and accused of public disorder.

Shoppers -- all of whom are members of the store -- are calling for refunds on their membership cards.

A notice outside the store said it would re-open in the near future, but no date was given.

At the gates, customer Lu yesterday said he was waiting to be reimbursed for the money on his card.

"I still have scores of yuan in my membership card. And I'm luckier than many members, whose cards still have nearly 1,000 yuan (US$120) on them.

Lu bought the card for 120 yuan (US$15) last year. "Of this, 20 yuan (US$2.4) is the membership fee, he rest to spend in the shop," he said.

This is the minimum that must be spent on a card, but many customers load up their cards for convenience.

The Beijing Youth Daily says there are more than 50,000 PriceSmart members in the capital city. PriceSmart has four warehouses in Beijing.

A member of staff at PriceSmart said, "The store was closed last Thursday without any explanation.

"Nobody told me when it will open again."

Sources with PriceSmart refused to comment yesterday.

PriceSmart operates membership warehouse clubs in Latin America, the Caribbean and Asia, according to its official website.

  Today's Top News     Top China News

Cross-Straits charter flights promising



Hopes for peace rise as Abbas wins votes



China tycoon donates $1.2m for tsunami aid



Yushchenko declared winner of Ukraine vote



Urbanization may cause geological disasters



China baby pooh-poohs diaper ad offers


  Urbanization may cause geological disasters
  Swindlers get away with 300 million yuan
  Draft law promotes use of renewable energy
  Doctors under protection: scheme launched
  Polar explorers climb peak of Antarctica
  China tycoon donates $1.2m for tsunami aid
  Go to Another Section  
  Story Tools  
  News Talk  
  It is time to prepare for Beijing - 2008