CentralWorld costs Zen fire at B1.3bn
Published: 21/05/2010 at 06:59 PM
Online news: Breakingnews
The rear section of CentralWorld mall could possibly be rebuilt in six months, but the rest will take a lot longer, a Central Pattana Plc executive member said on Friday.
CentralWorld mall, the second-biggest retail complex in Southeast Asia, suffered massive damage due to arson on Wednesday when troops dislodged protesters from Ratchoprasong intersection, which they had occupied since April 3.
The fire raged out of control because authorities had cut off electricity and water supplies to the Ratchaprasong area. This hindered firefighters and disabled the mall's sprinkler system.
"We have industrial all risks insurance of 13 billion baht and another US$100 million for riot and terrorism,'' said chief financial officer Naris Cheyklin.
"Zen was badly hit but the back bit hasn't been affected that much and can be renovated. The cost of rebuilding and renovating everything shouldn't reach 10 billion baht, within the insurance limits.''
CPN invested 26 billion baht to open the store in 2006, aiming to draw 150,000 shoppers per day. About 5,000 people worked there in at least 500 shops.
Zen has seven floors totalling 50,000 square metres, topped by 13 floors of Zen World with another 30,000 sq m. It sold clothes and other goods targeted at younger customers, tourists and affluent Thais.
The store expected to lose 1.35 billion baht in sales if it has to close for renovations for at least six months. Zen had targeted sales of 2.7 billion baht this year.
CPN closed 12 of its 15 stores in Bangkok and the surrounding area on Thursday because of the security situation, but said all of them opened today except for those in the Silom and Chidlom areas. Its store in Chiang Mai, which also experienced public disorder on Wednesday, was also closed.
Delaying the planned temporary closure for renovation of another flagship department store on Lat Phrao "could be an option'' to compensate for lost revenue, said Mr Naris.