Business

FHL Logistics closes down

By RACHNA LAL and RANOBA BAOA FFijian Holdings Group Limited (FHL) chief executive, Nouzab Fareed, has kept his word and has closed down the group’s loss-making subsidiary, FHL Logistics. FHL
04 Jan 2014 09:41

By RACHNA LAL and RANOBA BAOA

FFijian Holdings Group Limited (FHL) chief executive, Nouzab Fareed, has kept his word and has closed down the group’s loss-making subsidiary, FHL Logistics.
FHL Logistics was closed fully on December 25, 2013.
Mr Fareed said: “It’s a big deal for us because it will reduce the impact on FHL.”
Mr Fareed had assured shareholders during the group’s annual general meeting the past October, that he would resolve FHL Logistics’ issues before Christmas.
This, he had said, would be done either by selling the company or by closing it down.
Fijian Holdings is planning on selling FHL Logistics equipment to recover some money.
FHL Logistics recorded a loss of $1.29 million for the financial year ended June 30, 2013 compared to a loss of $2.5 million for the year ended June 30, 2012.
Whilst the numbers may have shown things are getting better, Mr Fareed noted FHL Logistics has made a combined total loss of $10 million.

Staff package
Meanwhile, Mr Fareed confirmed no staff had been laid off as there were very few who had remained.
“When the company closed, two staff we acquired and absorbed into the group but the other staff, step by step they went away.
“I think they all went happily. We have an approach as well whereby any time any staff who wants to leave a loss-making company, they are paid properly.
“We explained to then what had happened and they understood. They took up their own package and left.”

About FHL Logistics
FHL Logistics commenced operation in July 2010 with the objective of supporting FHL Group wide logistics services.
It started with a bang where they spread their operations all over Fiji within their first year of operations but the results were well below expectations.

Fijian Holdings Limited Group chief executive, Nouzab Fareed.



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