Three independent directors and two key executives of financially troubled retailer Koutons have resigned from the company, as it struggles to raise funds from markets.
Koutons’ independent directors Vinod Chander Sinha, Girish Chandra Raghubir and Krishnamurthy Santhanam have resigned citing ill health and personal reasons, while its Chief Financial Officer, Ajay Mahajan, and Company Secretary, Poonam Chahal, have also put in their papers. Last year, Ajay Mittal, Anil Kathod and Rajeev Grover had resigned as independent directors of the company.
The company was also hit by a sharp spurt in the pledging of promoter shares, a decline in the company’s stock prices, rumours about the default on its bank dues. Icra had also suspended ratings awarded to Koutons’ fund-based facilities. With a 2.42 per cent decline on Monday, the company’s stocks have fallen by 51 per cent since the beginning of the year.
Koutons was planning to launch a premium brand and shut stores, besides rasing Rs 400 crore through a qualified institutional placement or global depository receipts by December last year to improve its finances.
“The fund raising plans have not yielded any results. They are still grappling with many issues,” said a research analyst with a Mumbai-based brokerage. In a statement filed with the BSE, Koutons said it has called a board meeting on February 3 to consider the financial results for third quarter of financial year 2011 and consider the resignation of directors with effect from January 28, and executives with effect from January 29.
The board will also consider the appointment of KK Katara, Pravesh Ahuja and Rajeev Khandelwal as additional directors (independent) of the company and the appointment of Arun Aggarwal as the CFO and company secretary of the company.