Abu Dhabi Co-op says it is financially stable

23/12/2014 06:39 AST

Abu Dhabi Cooperative Society (Co-op), the supermarket operator, has assured it is a “financially sound” organisation after the Federal National Council (FNC) discussed low governmental support to co-ops.

During the last FNC session on December 16, Mariam Al Roumi, Minister of Social Affairs, said that three co-ops requested liquidation, and that one of them has already been liquidated after losing over 70 per cent of its capital.

The minister did not specify whether the co-ops were in Abu Dhabi or not.

Al Roumi said that liquidation is the last option a company should resort to, and that according to law, companies can only be liquidated if they lose 50 per cent of their capital.

The minister added that the three co-ops that asked for liquidation had such financial issues due to poor management, and sales via credit rather than cash.

On Monday, an Abu Dhabi co-op spokesperson who chose to remain anonymous told Gulf News that the FNC has not contacted Abu Dhabi co-op regarding financial issues.

He assured that the organisation, which is publicly listed on the Abu Dhabi Securities Exchange, is financially sound. While he declined to elaborate on financial issues, he said that the co-op has the balance sheet to prove its financial situation.

Meanwhile, the FNC has called on the government to increased support to co-ops by ensuring the supermarkets get competitive prices for water and electricity, and pay lower fees to the Ministry of Labour when hiring new employees.

The FNC also called on the Ministry of Economy to monitor co-ops more closely to ensure they do not face such financial troubles.

Gulf News