Mounting debt and slow-moving stock ail value retailer Vishal Retail, which started off as a small player in the
organised retail space but grew rapidly.
For the quarter ended March 31, 2009, it has incurred a loss of Rs 114.7 crore. This is a steep fall from a net profit of Rs 10.4 crore it made in the same quarter a year earlier. The company’s total income too fell by Rs 90 crore in the fourth quarter to Rs 244.7 crore.
It is planning a number of corrective moves that include debt restructuring, shutting down unviable stores, evaluating various stock categories and eliminating the slow moving ones, said Ambeek Khemka, group president, Vishal Retail Ltd. “We have spoken to bankers to prepare a report on debt restructuring,” he said.
It is on the look for stores that are unviable and may shut down 10 stores soon. Vishal now has 170 stores, down from 180 at the end of 2008.
Its expansion plans have been on hold for several months now, and the stand will continue. Khemka said the company may only open 20 new stores in the entire year but only through the franchising mode.
The company, which has a debt of Rs 730 crore as of date, has also reduced its manpower strength from a peak of 13,000 plus employees at one time to about 8,800 now.