Lets write the orbituary of Subhiksha

Subhiksha, the food chain is dead. Another idea, though not a unique one, laid to rest or should be laid to rest on the temptation of fast growth, high valuation model. The model of greed which so many of the Indian businesses pursued. Some were able to survive while most landed themselves in trouble.

Subramanium is still hopeful that a solution will finally emerge. According to me, he is banking on the fact that a large number of creditors have huge amounts to collect from Subhiksha and that they will invest more money to recover their previous investment back. Well, I hope all these guys are financial experts and have heard of the concept of sunk cost. They need to sell off all assets, if any, that Subhiksha has and write off their losses. There is no point in spending good money to recover bad money.

The only reason for investing and reviving this company was if its concept was unique. We all know there is nothing unique about Subhiksha’s concept. Its time all the stakeholders let it go.

Avinash Narula

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