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BANGKOK - On the heels of its strong second-quarter financial results, Brussels-based Delhaize Group, parent company of the Food Lion supermarket chain, said late last week that the company will shut down its money-losing Thailand operations after a seven-year attempt to penetrate the retail food market there.
Delhaize said it will close its remaining 26 Food Lion locations in the country after the shuttering of eight stores last month. Delhaize e.v.p. Jean-Calude Coppieters said in a statement that the company's resources "would create more value for the group when invested in other assets."
Delhaize, which had employed 1,340 workers in Thailand, last year reportedly lost 521.9 million baht (US $12.6 million). According to the statement, shutting down the Thai stores would include a one-time third-quarter charge of up to 16 million euros (19.3 million dollars) for severance pay and other expenses.
In March Dutch company Royal Ahold NV sold its stake in the Tops supermarket chain in Thailand.