Founder rescues Asos of India: Labour peer Lord Waheed Alli steps in to stop online fashion firm Koovs going bust
Rescue: Koovs founder Lord Waheed Alli
A Labour peer has saved online fashion retailer Koovs from collapse after buying it when it went into administration.
Bosses at Koovs, dubbed the Asos of India, had hoped for a major investment from shareholder Future Lifestyle Fashions – part of India’s largest retail group – but the cash failed to arrive. That left the door open for Lord Waheed Alli, who founded the firm, to step in.
He said: ‘I could not stand by and allow all the hard work which has been put in to be destroyed, with the loss of jobs and the damage to our suppliers which would have followed.
‘The action we have taken means Koovs and its trading subsidiary can continue to operate and jobs, creditors and customers are protected.’
Shares were suspended at 11.30am yesterday at 3.2p. They listed at 200p in 2014.
Alli, who oversaw Asos as its chairman for 12 years, had attempted to turn Koovs into Asia’s answer to the online fashion giant by cashing in on India’s growing younger affluent shoppers.
He has ploughed around £17million of his own cash into Koovs since founding it in 2012.