Piazza Italia 'closes' amid mounting debts

By Xu Fan (China Daily)
Updated: 2009-11-16 08:55

A dozen suppliers owed a total of about 500,000 yuan expect to be paid today by Piazza Italia, which claims to be the biggest Italian food center outside Italy.

Piazza Italia 'closes' amid mounting debts

The piazza at the China Central Place in Dawanglu and near the premium department store Shin Kong Place closed suddenly for "refurbishment" last week.

It was once a popular food destination and is owned by the Italian retail chain operator Trading Agro Crai and the Italian government-controlled Simest, a trade promotion group.

A businessman surnamed Chen, who supplies vegetables to the piazza, said that a dozen suppliers gathered at the center last Friday after they were told it had suddenly closed.

Chen said they asked for outstanding debts to be finalized, but the piazza manager did not show up.

"The Italian boss promised they would settle accounts with the suppliers every month. But since July, they have been delaying payments," said Chen.

"The Italians promised they would pay us tomorrow, so we have to wait," said Chen yesterday, adding that suppliers were prepared to sue if they did not receive their money.

A procurement assistant with the pizza center named Li Li said the piazza was unable to continue its business because of gigantic losses.

She told the Legal Evening News that her manager was trying to pay suppliers and the employees.

The owner of the center was not available to comment yesterday.

One of the employees of the piazza said business had been slow for a long time and many employees had not been paid for several months, reported the Legal Evening News.

A security guard surnamed Qiao said he was posted at the piazza to ensure that property was not removed from its restaurants and facilities.

The property management company, Beijing CCP & FPD Savills Property Services Management Co Ltd, said that the piazza's owners had paid its management fees.

A spokesman with the company surnamed Zhang said: "We know nothing about the piazza's closure. We heard that it was closed for refurbishment."

In August, when the Bird's Nest held the Italian Super Cup soccer match, Inter Milan and Lazio held meetings with fans in the piazza.

Sun Yufeng, a young employee of the nearby Book Fun store, said business had been slow for a long time.