ⓘ Featured image credits: Koovs-Twitter
The AIM London-listed fashion company that offers private labels, curated fashion and lifestyle products, Koovs has derailed 140 employees which are about half of its employee base, as reported by a number of publications last week.
Mary Turner, CEO of Koovs in an email to the Economic Times without commenting over the layoffs said,
“Koovs has successfully re-financed the business and re-focused its business priorities, which included streamlining of some of its operations,”
“We have been instrumental in bringing the latest in international fashion to Indian wardrobes and will endeavour to become the ‘go-to’ western fashion destination for India’s millennials and Gen Z,” Turner added
Back in 2018, Kishore Biyani, the CEO of The Future Group, a Mumbai headquartered conglomerate expressed his plans to acquire a 30 percent stake in Koovs for INR 140 Cr (around $18.6 Mn). The first tranch amounting INR 54 Cr was closed in 2018 and the second one of INR 34 Cr in May 2019 but the latter didn’t meet as Kishore Biyani’s company couldn’t excel necessary approvals from the RBI in December 2019.
The fashion retailer in a notice to the London Stock Exchange in December informed that it has entered into administration due to untenable cash flow. The company in the notice said,
“A competitive sale process has been conducted over the past month in an effort to continue the business as a going concern, but no viable offers were received,”
After the appointment with an administrator, Koovs’ business and assets were sold to SGIK 3 Investors, which is a venture capital firm owned by Koovs’ largest creditor and chairman Waheed Ali.
Koovs was the second attempt of Biyani to acquire a stake in an online fashion and lifestyle retailer. Back in 2016, Biyani also had an unsuccessful bid of buying a stake in Jabong, which was acquired by by Flipkart’s subsidiary Myntra for $70 million.