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Report: Wal-Mart Suspends Trust-Mart Restructuring
Wal-Mart (NYSE:WMT) has suspended its plan to restructure Trust-Mart hypermarkets, including a store in Guangzhou's Fanyu District, Guangdong province that is scheduled to begin on January 1, reports Beijing Business Today. Wal-Mart did not comment on the restructuring, the report said.
Three Trust-Mart stores in Guangzhou and Shenzhen have recorded nearly 30% declines in performance since Wal-Mart has spent tens of million of yuan to renovate them, the report said. The decision to suspend Trust-Mart restructuring is also due to the resignation of Wal-Mart executives Meng Yongming and Zhang Ren, who were involved in operation, according to an unnamed insider.
Wal-Mart spent $264 million for a 35% stake in Trust-Mart in February 2007 and had announced its intention to acquire the remaining stake with $320 million in February 2010.
Reports in September said that Wal-Mart planned to start renovating Trust-Mart supermarkets in September to establish a unified purchasing platform.
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