Aditya Birla Group to shut down

Shoes & Accessories - - The Month That Was | Updates I India -

Ce­ment-to-telecom con­glom­er­ate Aditya Birla Group is re­port­edly down­ing the shut­ters on its fash­ion e-tail­ing ven­ture Aditya Birla On­line Fash­ion’s Abof, as it fails to com­pete against the deep dis­count­ing-led model of ri­vals Flip­kart and Ama­zon. The com­pany man­age­ment in­formed the staffers that it will not op­er­ate be­yond De­cem­ber 31. “Look­ing at how big and long-term e-com­merce busi­nesses con­tinue to strug­gle and are un­likely to make money for some time, it did not seem log­i­cal to con­tinue as if every­thing is all right in the sec­tor,” said Santrupt Misra, HR direc­tor at Aditya Birla Group.

“All 240 em­ploy­ees of the com­pany would be given four-and-a-half months’ salary as com­pen­sa­tion if they quit,”misra added.

Abof’s pri­vate la­bel, Skult, will be ab­sorbed by Madura Fash­ion & Life­style, the group’s ap­parel divi­sion. Abof was floated in May 2015, when the group con­sol­i­dated its branded ap­parel busi­ness un­der life­style re­tailer Pan­taloons Fash­ion and Re­tail In­dia Ltd. The e-tailer sold ap­parel, footwear and ac­ces­sories, hous­ing its own mer­chan­dise as well as other brands. This is the se­cond e-com­merce ven­ture that Aditya Birla Group has shut down. It had shut down Trendin. com last year for sim­i­lar rea­sons.tra­di­tional re­tail­ers have been ven­tur­ing into e-com­merce of late, al­beit with lim­ited suc­cess.

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