Home / Knowledge / News / Apparel/Garments / Provogue shuts over 60 stores as debts mount
Provogue shuts over 60 stores as debts mount
07
Apr '16
Reeling under a cash crunch, Mumbai-based apparel retailer Provogue has closed down over 60 stores in the past one year and is delaying salaries of employees. Lenders are tightening the screws on the company's promoters and are contemplating invoking powers under strategic debt restructuring (SDR) provisions.

Provogue has a total stand-alone debt of around Rs 305.9 crore, The Financial Express has reported. In the December quarter, it reported a net loss of Rs 49.73 crore, on net sales of Rs 82.65crore. For the last couple of years the company has been consistently reporting losses almost in every quarter.

“Our main lender is Andhra Bank and it is true that they are trying to bring in new management under SDR. We are negotiating with them on the same and the final decision is expected by first week of April. We are trying to get our debt restructured and have requested the banks to support us,” Provogue's Managing Director, Nikhil Chaturvedi said.

Under SDR, banks have the power to convert a part of a defaulting firm's debt to majority equity and take operational control. Once the decision to invoke SDR is taken, banks will have about 18 months to find buyers for this equity.

Provogue is continuing with store rationalisation and plans to shut few more loss making stores across the country, Chaturvedi said.
In the last one year the company has rationalised store count and has only three stores operational in Mumbai and around 40 stores operational in the country compared to more than 100 stores across the country in 2014.

According to sources the company is delaying salaries of employees by around 2 to 3 months. Also it is no longer sending fresh stock to its stores and is selling stocks at around 30 to 50 per cent discount on most items. The company has around 60 employees across India, another senior official said. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Saket Garg
Garg Corporation

The biggest challenge is lack of skilled workforce and competition from...

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search