Cellucom closes up shop in the UAE
Mobile phone retailer has closed all of its stores in the United Arab Emirates
Leading mobile phone retailer Cellucom has closed all of its stores in the United Arab Emirates and its chief executive Arun Nagar has fled to Africa as a legal wrangle ensues.
The news, which was broken by UAE daily The National today, said that Cellucom stores began closing in September 2009 after major stakeholder Al Rostamani Group filed for liquidation of the retailer because they "could no longer sustain themselves as going concerns".
"Al Rostamani Group has acted responsibly in the interests of the Cellucom creditors and shareholders in filing the liquidation proceedings," the company was quoted as saying in a statement.
Cellucom CEO Arun Nagar left the country last year and is now said to be in Tanzania, expanding the business on African soil. The company has operations across the Gulf, as well as Africa and India, with more than 25 outlets in the UAE at one time.
Al Rostamani's liquidation applications are still subject to a final decision by the Dubai Courts, according to a related Gulf News report.
"Al Rostamani Group can make no further comment at this stage. It is worth noting that the application to liquidate Cellucom does not reflect in any material way on the financial position of the Al Rostamani Group or any of its group companies, nor on the continuation of any of their respective businesses," a statement from the company read.