I am a webmaster for a e-commerce site and I am caught with a query for which I would like your views and help.

I have a site that has got into some kind of ranking penalty trouble in Google and has lost all its ranking. The site is yet indexed in Google though.

So my query is that if I create a sub domain on it like for eg. store.xyz.com, then can I rank that sub domain on Google with fresh seo work.... or it will also be affect by the penalty on main domain.

Please give your valuable feedback and solution for my query.

Thanks.