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Pantaloon must have been real desparate to sell its clothing chain

Posted by fairval on May 1, 2012

We all knew Future group was in trouble, but amazing to see it was so desperate. It has sold its one of the few profitable business to a key rival.

An article in Firstpost says; win-win for both. It may certainly be great for AB Nuvo, but on Future side, it points to a desparate need for cash. Its fashion retail was a key part of its business, and what it originally started with. To have sold it, is a huge step, and surely one Biyani would not have ideally wanted to take.

Future Capital is on the block as well for majority sale.With fashion gone, what Biyani has is the erstwhile subsidary of Pantaloon Retail – Future Value Retail, and a few minor businesses like Hometown, ezone etc, all of which are struggling.

Pantaloon Retail (the listed co) has more than Rs 5000 crore of debt, so even this sale may provide only a temporary relief.

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