Why did Subhiksha SuperMarket Fail ?

Rapid store expansion in various formats from groceries, medicines, mobiles, electronics, consumer durables and IT without sufficient fund in hand. Operated on very slim or zero margins as a result higher cash outflow whereas inflows were almost nil. Not much attention to customer service resulted into bad quality service at store level. Downstream supply chain was not integrated as a result lower fill rates and customer dissatisfaction. Expanded business through debt (` 7500mln debt). In October, 2008 the company ran out of enough funds to manage its operations. Poor inventory management resulted into defective inventory, breakages, lower fill days and pile up inventory.