'Koutons Retail delayed debt repayment, not defaulted

Apparel retailer Koutons Retail India Ltdhas only delayed payments to its lenders, a top official said, denying reports of a loan default , which had sent the company's shares plunging last week. 

The New Delhi-based retailer, currently valued at 4.75 billion rupees, lost 47 percent in market capitalisation last week, following reports of default and a rise in pledged shares by founders that led to murmurs of their probable exit. 

The delay was due to a "mismatch of cashflow, which will be rectified soon," Chairman D.P.S. Kohli told Reuters on Monday adding the company had a "slow first quarter". Shares in Koutons opened on Monday at an all-time low of 139.95 rupees, but recovered and were trading 0.48 percent up at 156.20 rupees at 3:35 p.m. local time in a Mumbai market that was up 0.44 percent. "Internal accruals will take care of debt repayment," said Kohli, adding that the festive season will boost sales at his 1,196 stores across the country. 




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