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Shoppers Stop Exited Non-Core Business

News Desk, News Nation 360 : Shoppers Stop Ltd. announced that it has closed the sale of a controlling stake of its 100% Subsidiary, Crossword Bookstores Limited (“Crossword Bookstores”) to M/s. Dinesh Gupta, Aakash Gupta and Family (Owners of Agarwal Business House) (ABH), Pune, pursuant to the share purchase agreement between Shoppers Stop and ABH (the “Agreement”) signed on August 31, 2021. The business of Crossword Bookstores is valued at Rs.41.6 Crs. Under the agreement, ABH will take over all the assets and brands. Any liabilities will be adjusted for arriving at the final consideration. At the Board Meeting of the Company held on August 31, 2021, the Board has approved the transaction. Subject to receipt of necessary consents, Shoppers Stop shall divest a 51% stake (expected to be completed within 15 days) and another 39% in the next 12 months. The sale of the Crossword Bookstores is consistent with the company's strategic plans, which is to focus on its core business and expand its strategic pillars viz, First Citizen, Private Labels, Beauty and most importantly, its Omnichannel business, which has grown more than 3 times in the last one year. Commenting on the sale, Venu Nair, Managing Director and Chief Executive Officer of the company said that they are pleased to continue the business transformation they set out to accomplish last March and selling the books’ business is an important part of that strategy. This represents another step in their progress to elevate Shoppers Stop to a customer-focused, Omnichannel retailer, to enable them to deliver on the promises they make to their customers and shareholders. Most importantly, they are selling Crossword Bookstores to their franchisee ABH, who has been in this business for more than two decades and are extremely passionate about the book business. They are extremely confident ABH will grow the book business and take it to the next level. He is very thrilled about this deal, as it is a win-win for both Shoppers Stop and ABH.

Report : Anustup Kundu