Vishal Retail news and archive

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...

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No differences with TPG, says Shriram Group

Vishal Retail owners, Shriram Group has cleared doubts about their souring relationship with US-based partner TPG Capital, a private equity company. There were rumours about a possible break-up between the two over Shriram’s inability to invest fresh funds in the debt-ridden Vishal Retail. The Rs 30,000-crores Shriram Group announced that their...

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TPG for Vishal to be Shell company

Vishal Retail may become a Shell company if Texas Pacific has its way. The foreign private equity firm, by agreeing to infuse Rs 500 crores, has put in a condition that Vishal Retail will transfer all its fixed assets to a special purpose vehicle that will be predominantly owned by Texas Pacific. Once the assets are parked in the SPV, Texas...

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Vishal makes net profit in Q4

Vishal Retail has completed the sale of its wholesale and retail businesses for about Rs 700 million in cash, ending a process to revive the cash-strapped retail company that started in late 2009. The conclusion of the sale makes Vishal Retail the first listed Indian retailer to sell out in the wake of the global economic meltdown. However, the...

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TPG-Shriram takeover Vishal Retail

PE firm TPG Capital and Chennai-based Shriram Group have closed the transactions to take over Delhi-based loss-making company Vishal Retail. While TPG has acquired the wholesale and franchise undertaking of Vishal Retail, Airplaza Retail Holdings, a part of the Shriram Group, has acquired the retail undertaking. TPG will invest Rs 200 crores...

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Vishal Retail gets a breather from SC

Vishal Retail’s appeal against an Employees Provident Fund Organisation directive to deposit Rs 3.5 crores toward the provident fund dues of 13,000 of the ailing supermarket chain’s workers was admitted by the Supreme Court of India. Issuing a notice to the EPFO, the court directed Vishal Retail to deposit Rs 50 lakh with the provident fund body...

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Vishal Retail’s founder forms new firm

After selling off debt struck-Vishal Retail to the Texas Pacific Group (TPG) and the Chennai based-Shriram Group, Vishal Retail’s founder Ram Agarwal has registered a company under the name of V2 Conglomerate in Kolkata with his son and cousin as directors. There are four company-owned stores which will remain with Vishal Retail, according to...

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TPG forms team to run Vishal

TPG Capital is putting together a team to run Vishal Retail once its takeover of the firm is complete. More than a dozen people from human resources, merchandise, finance and other areas have either come on board or are in the process of joining. Late last month, lenders involved in restructuring Vishal Retail’s debt of Rs 730 crores approved a...

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Vishal accepts TPG’s offer

Lenders to debt-ridden Vishal Retail came to a conclusion to accept investment firm Texas Pacific Group’s (TPG) proposal to acquire the retail outfit, putting Future Group out of the race. The move came after TPG agreed to offer some more money to the lenders. According to one of the secured lenders, the company has been given exclusivity in...

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Vishal Retail the saga continues

R C Agarwal, promoter of beleaguered Vishal Retail, has come out in support of the offer from Texas Pacific Group (TPG) over that from Kishore Biyani’s Future Group. Media reports suggest that the lenders, who are finalizing a debt restructuring plan for Vishal, are also expected to opt for TPG, as Agarwal has advised. TPG is expected to sweeten...

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Vishal deal in limbo

Future Group’s hesitation will probably delay the process of corporate debt restructuring (CDR) of Vishal Retail. As of now, whether Texas Pacific or Future will take over the debt-ridden Vishal Retail is uncertain. Future Group had proposed converting Rs 175 crores of the total debt into redeemable preference shares, with redemption at the end...