(Bloomberg) -- Thailand’s Pace Development Corp., owner of gourmet grocer Dean & DeLuca, said it’s in default on 2.6 billion baht ($88 million) of debt owed to one of the nation’s top banks.
Siam Commercial Bank Pcl has asked the firm to repay outstanding amounts by Nov. 4, Pace Development said in a stock exchange filing on Monday.
The company said it will accelerate discussions with the lender to prepare financial restructuring and debt management plans so it can continue developing projects.
The trend-setting Dean & DeLuca store in New York introduced Americans to international delicacies more than four decades ago, but lately has been battling to survive. Pace Development, which in 2014 agreed to purchase Dean & DeLuca, said in July tough U.S. conditions wouldn’t prevent expansion in other regions.
In September, Pace Development said Dean & DeLuca’s Thai operation plans to raise 2 billion baht by selling bonds, with the proceeds earmarked for repaying debt and funding investment.
Pace Development’s shares tumbled as much as 13% in Bangkok. The firm’s market capitalization is just $33 million. Siam Commercial Bank slid as much as 3%, the most in about a month.
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