Lilliput news and archive

E&Y to pay 35 million dollars to Bain Capital in Lilliput Kidswear fraud case

Ernst & Young (E&Y) has been accused of providing shoddy advice to private equity major Bain Capital to invest in the Indian firm Lilliput Kidswear. Now it has to pay 35 million dollars (Rs 235 crores) to settle a Massachusetts lawsuit against it. The 2014 lawsuit alleged that EY’s auditing helped an accounting fraud and sought damages from the...

Apparel

Lilliput looks for a fresh start

Kidswear retailer Lilliput, which has been in the news for a fallout between Bain Capital and auditing firm Ernst and Young, has expressed its eagerness to give its business a fresh start. The company says it has already paid part of its dues to its Bangladeshi vendors. Private equity firm Bain and 10 of its subsidiaries have sued EY Global and...

Apparel

Lilliput starts releasing Bangla vendors' dues

Lilliput Kidswear has started releasing dues of its Bangladeshi vendors after nearly two years, following negotiations between the two governments. The announcement was made at a meeting of the India-Bangladesh Joint Working Group on trade in New Delhi recently. “Both sides agreed that there is a need to involve the respective chambers of...

Apparel

Lilliput’s non-payment a spanner in Indo-Bangla trade ties

Non-payment of about 4 million dollars (Rs 21 crores) by Lilliput Kidswear to about two dozen small Bangladeshi garment exporters may spoil the trade agreements between the two countries. Bangladesh has now urged the UPA government's intervention to secure the outstanding payments for 22 small Bangladeshi garment exporters from New Delhi-based...

Fashion

FDI Impact: Ailing brands/retailers look for revival

FDI has augured well especially for ailing retailers and brands. For example, after a long battle of accusation and court drama, private equity investors, Bain Capital and TPG have transferred their shares in Lilliput Kidswear to promoter Sanjeev Narula. This put an end to their much publicised spat. The move was made after the government...

Apparel

Lilliput bullish on rebuilding brand, to invest Rs 300 cr

After sorting out their differences with PE investors TPG and Bain Capital, debt-ridden kidswear player - Lilliput is all set to bounce back with aggressive fundraising plans. The Delhi-based retailer has already started another round of fundraising discussions with two Chinese private equity players to raise another Rs 300 crores to meet its...

Apparel

Lilliput case-study – A warning for India investing

Last September, less than two weeks after an IPO plan was approved, the private equity owners of Lilliput Kidswear, Bain Capital and TPG got an anonymous call stating irregularities in Lilliput’s accounts. This set off a chain of reactions. Though India’s retail sector is open for foreign investment… 100 per cent in single brand, investors’ woes...

Apparel

PEs demand Lilliput make interim audit report public

Private equity investors Bain Capital and TPG, who have been at loggerheads with Sanjay Narula, the owner of kids’ wear company, Lilliput, has filed an application in the Delhi High Court, where have asked for brief inspection of the court-appointed independent auditors’ interim report reveals financial irregularities, and demanded the court to...

Apparel

Now Gini & Jony looking for stake sale

After Lilliput Kidswear announced its plans to sell off the company because of a fall out with PE investors TPG and Bain Capital, the second largest Indian kids’ wear brand Gini & Jony too is looking for stake sale. The buzz is that investors, including Anil Ambani's Reliance Capital are looking to make an exit from the company that went through...

Apparel

Lilliput confirms purchase offer from L Capital

Debt-ridden retail firm Lilliput Kidswear, which recently decided to sell off the company to get out of its debt situation has confirmed that it has received a letter of intent from L Capital, the private equity (PE) arm of Louis Vuitton Moët Hennessy, the world’s biggest luxury goods group. They want to acquire 85-90 per cent stake in Lilliput...

Apparel

Bain Capital drags Lilliput to court

When PE investors TPG and Bain Capital had accused Lilliput Founder Sanjiv Narula of fudging company accounts, Narula had dragged the investors to Delhi High Court alleging that it was the investors’ plan to stall company’s fund raising plans to gain majority control. This time its Bain Capital’s has approached the Delhi High Court, accusing...

Apparel

SS Kothari Mehta & Co withdraw from Lilliput audit

After news of Lilliput Kidswear promoter Sanjeev Narula planning to sell off the debt ridden chain came in, the Delhi High Court-appointed auditor, SS Kothari Mehta & Co’s withdrew from carrying out audit citing non-cooperation from the company as a major reason. This is expected have a major impact on sale negotiations initiated by all...