(ECNS) -- Regional supermarket chain Pang Dong Lai will close its flagship branch in Xuchang, Henan Province, in December 2026 after a rental dispute, founder Yu Donglai announced Sunday.
Yu said some employees failed to sign lease agreements in 2015, leading to sharp rent increases for several tenants. Though they represented only a small share of the store, he stressed the issue violated the company's principles of fairness and integrity.
The Xuchang store, opened in 2002 as Pang Dong Lai's first large‑scale complex, generates about 2 billion yuan ($280 million) in annual sales and more than 100 million yuan in profits.
The company previously closed its Xinxiang store in 2015 after rent tripled, later reopening at a new site with government support.
Facing rising rents, Pang Dong Lai is increasingly investing in properties it owns itself. Its Xuchang Mengzhicheng project, the company's largest single investment, involves nearly 6.5 billion yuan in construction and renovation costs, funded entirely with its own capital and without bank loans. Covering 575,900 square meters, the project will include department stores, restaurants, hotels and other businesses, and is expected to open in September 2029.
(By Gong Weiwei)
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