Store One Retail India announced a loss of Rs 8.6 crore for the June quarter (Q1) and appears to have got tired of waiting for its retail business to turn profitable. Its loss comes on the back of a Rs 35 crore loss in 2010-11 and a loss of Rs 51.2 crore in the year before that.
The company operates retail stores in Nagpur and Pune which are multi-brand outlets, selling apparel and accessories. In 2010-11, its turnover was Rs 3.2 crore.
The company was earlier known as Indiabulls Retail Services, and before that was known as Piramyd Retail. The company was acquired by Indiabulls as part of its diversification spree in 2008, but the global financial crisis in that period hit retail companies who were in a frenetic expansion mode. The big ones survived but the smaller ones such as this company, which were already struggling, never quite recovered.
The company said, in a statement, that it has decided to shut its existing retail trading business. It will focus on wholesale trading along with facility management (property services), and machinery and equipment management business. The company will explore new opportunities in the wholesale trading business segment, which can be done with the existing resources and infrastructure. But no further details have been given.
Read the press release announcing the closure here and download its financial results for the June quarter here.