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 EY LLP in a Massachusetts court, claiming that the investment has now been rendered worthless. Bain invested 59 million dollars (Rs 354 crores) to buy 31 percent of Lilliput Kidswear. It had alleged that EY was involved in fraud, aiding and abetting fraud, negligent misrepresentation, and unfair and deceptive trade practices based on EY’s involvement in the scheme to defraud Bain.

Sanjeev Narula, Founder and CEO of Lilliput, says he is the sole owner of the company as all PE investors have exited. Bain exited the company in October last year. Narula says the dues owed to Bangladesh vendors have been partly repaid. Bangladesh had sought help from India’s commerce department to recover the amount owed to their vendors. Narula says he is trying to restructure the business. All the stores are individually profitable.