Troubled Vishal's top officials quit

Delhi-based Vishal Retail is witnessing an exodus of top officials at a time when the company is facing a liquidity crunch and the business isn’t generating enough cash from its operations. Manmohan Agarwal (not related to the promoters), the chief executive, corporate affairs, has put in his papers and is expected to leave in the next two weeks. Amit Chaturvedi, head, finance and accounts, has also resigned. Sanjay Goel, vice-president, finance & accounts, has already left.

“We are trying to retain Manmohan Agarwal and Amit Chaturvedi,’’ said Ramchandra Agarwal, the Chairman and Managing Director.

Vishal Retail’s sales have fallen drastically. Nor has there been a positive cash flow in the past two months. Analysts view the latest development as an indication that the company may be offered for sale.

 

“The company is in serious trouble and that is why the top management is quitting. The promoters may even put the company on the block,” said a Mumbai-based analyst, who declined to be named.

However, CMD Agarwal denied such a move. ''We are not thinking of selling the company right now. The only thing on our mind is how to survive this downturn.”

“I was thinking of quitting the company for the last three months and it is not a sudden move,” said Manmohan Agarwal. “I am serving the notice period and completing the formalities.” He declined to reveal his future plans. Chaturvedi could not be spoken to.