SKNL dragged to court for loan default

SKNL promoter Nitin Kasliwal has been declared a willful defaulter by most lenders. After nonpayment on more than Rs 5,000 crore loans S Kumars Nationwide, or SKNL, men's luxury clothing in India is headed for bankruptcy. A day after the election of US president Barack Obama in 2008, clothing company Hart Schaffner Marx put a marketing slogan on its website: "Dressing Presidential. Pick your power suit. President-elect Barack Obama found his at Hart Schaffner Marx." A year later, Kasliwal bought the luxury suit maker and introduced it in India.

SKNL had acquired rights for manufacturing and marketing the Reid & Taylor worsted suiting in India. Reid & Taylor, a Scottish brand started in 1830s, dressed the world's elite. It came with the tagline 'Bond with the Best' as it was endorsed by James Bond actor Pierce Brosnan. To make it appeal to the Indian buyer, SKNL replaced Brosnan with Amitabh Bachchan.

Many global luxury brands such as Austin Reed, Ted Baker, Bobby Jones, Jack Nicklaus, Claiborne, Pierre Cardin, Lyle & Scott, Golden Bear, JAG Jeans, Alfred Dunhill, Escada and Carmichael House were owned by SKNL. The company is on the defaulters' list of 134 banks and financial institutions. In 2013, UCO Bank had named and shamed Kasliwal by labeling him a defaulter and publishing his photo in newspapers. The Bombay High Court had also ordered liquidation of SKNL assets and directed the lending banks to appoint an official liquidator to recover debt.

After 2012 the company collapsed under heavy debt and interest burden. It had made an unsuccessful attempt to raise money through an IPO of Reid & Taylor. The main reason was probably the financial crisis of 2008 that depressed demand for luxury clothing. However, shareholders have alleged that the company rushed into a financial crisis due to gross misconduct. Kasliwal became the promoter of SKNL in 2007-08. The company was founded by Abhayakumar Kasliwal and Shambhukumar Kasliwal in 1948.