Business Revival of A Giant Retail Chain with a Debt Over 700 Cr. into a profitable venture with Turnover of 1500 Cr. growing continuously
A very Popular Retail Chain in India was over-burgeoned with a Debt of more than 700 Cr. Even after having 180 Stores in Pan India,1200 Employees, and a good sales number, the company was over-advanced and out-of-cash facing millions of debt and cash losses. No salaries to Employees; no statutory dues/taxes were paid; litigation hassles with many filed cases and legal issues; higher attrition ratio; faster product obsolete rate; suppliers/vendors payment default; banks overdue with the account declared NPA. This further restricted fresh buying and there was a dispute among the company’s shareholders.
AAAPL Team significantly studied; analyzed and monitored the complete situation and offered the result-driven strategies for a positive outcome. We implemented revised operating procedures and initiated CDR (Corporate Debt Restructuring) from Banks and also introduced a Strategic Investor; an international PE Fund. The few under-performing stores were closed to reduce expenses and some of them were renewed into profitable units. The management of the Company also changed and there was a takeover where we handled complete due diligence and negotiated the bank settlements too. Comprehensive litigation plans were executed to sort out legal complexities and now the company is revived, rehabilitated, and growing with leaps and bounds with 400+ stores across India with no Cash-crunch; full job security to employees with manpower of 20,000, and again Zero Debt. The latest news was that the said PE fund has Sold the profitable venture with multifold valuations.