Provogue shut more than 60 stores last year

Apparel retailer Provogue has shut more than 60 stores last year and is even delaying the salaries of its employees. In last one year the company has rationalised store count and has only three stores operational in Mumbai, and around 40 in other parts of the country.

Even the promoters are facing trouble as lenders are thinking of invoking powers under strategic debt restructuring (SDR) provisions. Provogue had an outstanding debt of Rs 9,595.22 crore as of September. That quarter it reported a net loss of Rs 49.87 crores on net sales of Rs 131.71 crores. Under SDR, banks have the power to convert a part of a defaulting firm’s debt to major equity and take operational control. Once this decision is taken, the bank has 18 months to find buyers for this equity. During the interim period, the account will not attract higher provisions due to the adverse asset classification. Nikhil Chaturvedi, MD, Provogue has said that such an invocation is the prerogative of the bankers.

In the past Bollywood actors Fardeen Khan and Hrithik Roshan have endorsed the brand.