Koutons is also in talks with lenders to recast its debt in line with the current business environment

It posted 53.21% decline in it sales to Rs.162.47 Cr in quarter ended September 2010 as against Rs.347.25 Cr for the same period last year. Its net profit declined by 90.42% to Rs.2.26 Cr in quarter ended September 2010 as against Rs.23.59 Cr for the same period last year.
Koutons, which got listed in 2007, raised long-term debt from a consortium of banks led by Indian Overseas Bank two years ago to take advantage of the then booming retail sector. It started as a men’s brand in India, but later extended its portfolio to accommodate women and children wear.
But the economic slowdown in 2008 had an adverse impact on overall sales and the company had to stall expansion plans. Inventories piled up and the company fell short of cash.
Koutons currently operates a mix of both company-owned and franchisee apparel stores across India.
During the last few months the company has witnessed the exit of three directors and two senior executives. Rajiv Grover, an independent director and Anil Khatod resigned in August and Ajay Mittal, a nominee director of UTI Venture Funds Management also resigned in the same month.
Similar situation was seen with Subhiksha which went on aggressive expansion plans and then became defunct and the other was Vishal Retail which managed to overcome by selling its business to TPG Capital and Shriram Group.