Key Vishal Retail employee quits

Ambeek Khemka, group president of Delhi-based Vishal Retail Ltd, has put in his papers. “Khemka is no more associated with the company and his services have been discontinued with effect from February 2,” Vishal Retail said in a statement to exchanges today. The reason is not known.

When asked, Khemka said: “I have quit the company’’, without divulging the reasons.

Vishal Retail was formally admitted for corporate debt restructuring (CDR) in November 2009, as it could not repay short-term debt taken from its lenders. Vishal owes Rs 730 crore to banks such as SBI, HDFC, HSBC and UCO Bank, and LIC, among others.

Vishal runs a chain of 147 stores across the country. It ran into difficulty in late 2008, after it failed to raise equity amid an economic downturn, which also hit its sales.

Currently, it is trying to bring in a strategic investor to infuse equity. The company’s stock has fallen 15 per cent since November 20, when the case was admitted for CDR.