TPG, Shriram Group buy debt-ridden Vishal Retail

Debt-ridden Vishal Retail has completed its long time selling process of retail and wholesale businesses to the Shriram Group and private equity company TPG, respectively for the amount of Rs 70 crores.

Vishal sold its wholesale trading, institutional sales, and franchise operations to TPG Wholesale, the Indian arm of US-based TPG. Airplaza Retail Holdings, a company owned by the Chennai-based Shriram Group, will manage the retail stores.

 

Both transactions were done on a slump sale basis, where business is sold on a lump sum basis without assigning values to assets and liabilities. According to a joint statement by TPG and Shriram group, TPG Wholesale will operate the back-end sourcing, merchandising, logistics and franchise operations, while Airplaza Retail will operate the retail shops alongside other franchisee partners, currently operating Vishal-branded stores.