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| Vishal Retail to shut 10 loss-making stores |
| Press Trust of India / New Delhi Jul 23, 2009, 20:15 IST |
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Faced with Rs 115 crore loss, Vishal Retail will shut down as many as 10 of its outlets across the country over the next few months to reduce cost.
The company is also in the process of re-negotiating part of its Rs 740-crore debt.
"We are now looking to consolidate our business and close down unviable stores and we are also talking with our lenders to reschedule our debts, which are worth around Rs 740 crore," Vishal Retail Group President Ambeek Khemka told PTI.
The announcement comes a day after the retail chain reported a consolidated net loss of Rs 115 crore for the fourth quarter of 2008-09.
"Unbridled expansion coupled with the economic recession created a mess resulting in this huge loss," Khemka said.
He added that debt restructuring is the top-most priority to bring the business back on track.
"We have already centralised our warehousing operations. Now we are identifying unviable stores and within months we will close down up to 10 of them," Khemka said.
Vishal Retail has 170 large-format stores across the country, including 20 franchise-operated stores.
"Our payroll list has also been reduced drastically. From an employee strength of around 14,500 during the peak boom time, we are now down to around 8,800 employees," Khemka said, without divulging details regarding any future job cuts.
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