East India Company brand very much alive, says Indian-origin chief

London, Feb 27 (PTI) The Indian-origin chairman of East India Company on Friday stressed that the holding company and brand remain intact and are positioned for "long-term stability and growth" as part of a major investor-led pivot of the business.

Mumbai-born Sanjiv Mehta had revived the historic brand in 2005, as a reversal of its trading fortunes from infamously being associated with the colonisation of India until it was dissolved in 1874.

The entrepreneur expressed surprise at some recent media reports claiming that the revived avatar of the East India Company had suffered a similar fate.

"East India Company (EIC) is very much alive; the brand-owning and holding company entities remain intact and all intellectual property and core brand assets are fully preserved," Mehta told PTI.

"The business is in the process of completing a comprehensive restructuring process, designed to position the brand for long-term stability and growth.

"The old EIC was nationalised but left the brand behind. The new EIC will continue and take the good forward from the historical company and leave the bad behind. The storm was in a teacup, but the ship will continue to sail beyond the present hurdle with renewed energy and positivity," he said.

Mehta explained that the company was in line with other luxury retail entities that underwent “significant disruption” caused by the COVID pandemic, necessitating an essential pivot towards higher growth markets and regions, including India.

"As part of this process, certain UK operating entities were placed into liquidation or dissolved," he said.

"New equity is now being committed by a new investor with a long-term strategic outlook. The previous shareholders remain on the board to support the transition and work alongside the new investor and management team," he stressed.

The restructuring process is expected to conclude by the end of June, with "operational progress" anticipated ahead of the key Christmas trading period.

"After COVID, the company had committed to a flagship retail location on Bond Street (London) and funded the fit-out through short-term borrowing, with the intention of refinancing through equity and long-term capital.

"Despite constructive engagement with both existing shareholders and new investors, anticipated funding did not materialise within the required timeframe, necessitating decisive restructuring measures," added Mehta.

The entrepreneur also revealed plans to take a back seat from day-to-day operational pressures, with a younger team set to take charge of the brand's various businesses.

At the time he acquired and relaunched the company around a decade ago, he had pitched it as one of the world’s most desirable lifestyle brands with a portfolio of products spanning fine foods, jewellery, rare objects and coins, drinks, and homeware.

According to the official UK Companies House listing, the company commenced a “creditors voluntary liquidation” process of its UK operation in September last year. It led to widespread reports indicating the end of the road for the brand.

“The business remains committed to disciplined growth, strong governance, and building on the global brand awareness developed over the past several years," Mehta reiterated. PTI AK ZH ZH