According to this report in Times of India , promoters of Varkeys Supermarket are open to sell 35% to stay afloat. They are primarily looking at Private Equity [PE] for the immediate fund infusion and to consolidate business. Nothing much has changed since the earlier post on this blog. It has been more than 5 months since they reported to be looking for fund infusion . Executive director seems not being open to a buy out from another chain. It is probably a brave decision, which only time can tell. Every one in Kerala seems to be waiting for their revival. Shopping experience has not been the same here since the 84 year old brand went 'out-of-stock'.

Varkeys Bakery and Supermarket went out of stock for more than two weeks. Customers were returned saying there are some supplier issues which have been sorted out. According to media reports , Varkeys is facing liquidity crunch. Varkeys is reported to have 59 stores across Kerala in different formats generating Rs.180 crore in turnover. Varkeys is now looking for PE funds , which would be slightly difficult to come by as they have failed in an earlier attempt and there are cases of Subhiksha and Vishal Retail winding up or looking for fund infusion. Varkeys is the pioneer in organised retail in Kerala and is known for quality of products they sell but utmost professionalism was always missing. It is widely believed that rapid expansion has brought Varkeys in to this soup. Competition also is hardening with new organised players coming every now and then which includes Margin Free, Reliance and Big Bazaar. There are also neighbourhood stores morphing in to supermarket, as they are adap