Nathella Jewellery shuts shop due to financial crunch
Dues of customers will be settled through sale of ancestral property, says its managing director Prappana Kumar
The closure of 7 branches of Nathella Jewellery across the State has sent shock waves among the customers. Many of them have been gathering outside the shops seeking repayment of their deposits for a few days now.
However, the management has clarified that steps are being taken to clear the dues. Two days ago, some customers had lodged a complaint against the Tambaram branch for defrauding them of their deposits against gold saving schemes. Though monthly instalments were paid, they could not purchase jewellery.
Customers note that they had been having an issue regarding sale of gold ornaments at the store a few months ago.
S. Mahalakshmi , a resident of West Mambalam, tried to convert the gold bought at Nathella into cash for her personal needs. “When I approached their T.Nagar branch they said they can give a cheque after two months due to cash crunch. Since it was an emergency I had to sell gold to a local pawn dealer at a lesser rate,” she said. Employees have been deployed at the stores to answer queries of customers. Posters have also been put up at the stores on the financial crunch and assuring customers that cash would be repaid. According to the management of the 77-year-old brand, various factors, including business loss, led to the financial crunch. There are plans to reopen the branches — five in Chennai and one each in Vellore and Hosur — in a few days. Prasanna Kumar, Director of Nathella, said, “We are going through a tough time and our first priority is to help our customers. We just need some time.”
N. Prappana Kumar, Managing director of Nathella Jewellery, said, “We are selling our ancestral property to settle customers dues, particularly those who invested in the gold saving schemes. We are also planning to reach out through mails. We hope to settle dues in a couple of weeks."
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