Al Hokair’s debt reaches SAR 3 bln, says CFO

Fawaz Abdulaziz Al Hokair Co.’s (Al Hokair) financial obligations toward banks stand at SAR 3.4 billion, with short-term obligations accounting for one-third of the total while long-term ones make up the rest, chief financial officer Mohammed Abbaoui told CNBC Arabia.

The retailer has no intention of rescheduling the debt but seeks to reorganize it, Abbaoui said.

Al Hokair has allocated SAR 300 million to open new stores, Abbaoui said, adding that the company opened five new Lefties stores in one month and is looking to open 15 more before the end of the year.

The Tadawul-listed retailer is also eyeing the e-commerce sector and is currently developing a web portal to offer all its brands, aiming to generate 10 percent of its total sales online, he said.

According to Al Hokair’s board report, the fashion retailer is trying to boost its low-revenue sales and generate more liquidity to meet its obligations towards banks and commercial partners.

It also decided to freeze expenditure at its main shopping malls, cut staff, close unprofitable stores, and renegotiate business support with brand and mall owners.

However, Abbaoui said the company was not downsizing staff, adding that Al Hokair’s employees increased in May to 6,532, with total salaries amounting to SAR 20.8 million.