OREANDA-NEWS. April 30, 2015. The Groupe Auchan’s Partnerships Department was informed of the closing of the hypermarket under the Auchan banner based in Erbil, in Iraqi Kurdistan, which happened four days earlier, on 20 April.

This non-anticipated decision was taken by the SI Retail shareholders, the English-law firm managing locally the hypermarket, due to the difficult situation encountered in the country.

SI Retail signed an Auchan franchise contract in 2012, the hypermarket being opened on 25 June 2014. However, due to the operating difficulties faced by the hypermarket end-2014, Groupe Auchan had agreed to grant the operator more time to pay the franchise licence owed for the year, so that it could face its commitments. Despite this measure, SI Retail was not able to improve the situation of the hypermarket, which brought it to take this closing decision.

This unilateral decision from SI Retail put de facto an end to the contract signed by both firms.

Local employees received their April payroll.