Discount retailer Vishal Retail appeared to have moved a step closer to the end of its once spectacular journey after a group of lenders on Friday approved a plan to move nearly all of its assets and liabilities to new companies funded by a private equity firm. Under the plan approved by the corporate debt [...]
Vishal Retail to carry out slump sale of assets, liabilities to new cos
March 13, 2010 By Leave a Comment
Texas Pacific Group likely to buy Vishal Retail, convert it to Cash & Carry
March 2, 2010 By Leave a Comment
Private equity fund Texas Pacific Group (TPG) may take over the assets of the troubled Vishal Retail and convert it to a cash-and carry operation that will see the exit of RC Agarwal, who built a nationwide chain out of the shop he founded in Kolkata 24 years ago. Agarwal owns about 62% stake in [...]
Vishal Retail to commence debt restructuring process soon
October 4, 2009 By Leave a Comment
NEW
DELHI: Hit hard by mounting debts on account of rapid expansion and increasing
losses, Vishal Retail has decided to soon commence the process of corporate debt
restructuring (CDR).
The
company has a debt of around Rs 730 crore and had decided in July to shut down
around 10 of its outlets across the country and renegotiate part of its debts
with lenders.
“The company’s
lenders, who number over a dozen, would soon start the process of CDR. The main
purpose of the exercise is to streamline the repayment of the debt,” an industry
source said.
“A final decision
on the commencement of the CDR process will be taken soon,” the person added.
The move is intended to help
Vishal, which is among the leading retail players in the country, to get back in
shape and avoid further decline.
When contacted a company
official declined to comment. The retail chain’s business has been under
pressure for the last few months and for the first quarter ended June 30, 2009,
it had reported a sharp decline in total income to Rs 265.37 crore, as against
Rs 376.55 crore during the same period last year.
It showed a net loss of Rs
90.66 crore during Q1 this fiscal as against Rs 14.01 crore.
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