Spencer’s Retail, belonging to the RPG Group, is expected to report a net loss of around Rs 250 crore for the current fiscal. However, analysts state that the company will be in a position to reduce its losses in the next fiscal.
As part of its austerity measures, the company has decided to shut stores totalling 25% of its retail area and is expected to incur expenses of Rs 100 crore towards this end. In a related development, parent CESC has affirmed plans to infuse up to Rs 175 crore in Spencer’s Retail in the next fiscal. The former has pumped in Rs 250 crore in 2008-09.
The fund infusion plan is not expected to impact CESC’s expansion initiatives.