Why is Godfrey Phillips exiting from 24Seven? Here's what may happen to the round-the-clock retail chain

24Seven, a go to place for the crowd looking for some late night munchies, cigarettes and food, may either have to find new investors now or may shut down operations after its parent company Godfrey Phillips India announced its exit from the retail chain on Friday.

The tobacco manufacturer informed the exchanges about its plans to take a complete exit from operations of the retail business division following a negative net worth as on March 31, 2023 on account of accumulated losses.

According to the filing, the revenue for FY23 from operations for the retail business stood at Rs 396 crore, accounting to about 9.3 per cent of the total revenue from operations for the the Modi Enterprises-led company and the retail division.


What may happen next?

While the company has not revealed about its future plans with respect to 24Seven, it is highly possible that the stores may be shut down as it has decided to exit from the venture.

The other option, however, remains that it may seek to sell the retail business to other investors , who may decide to continue and carry out operations.

24Seven, which claims to be the first round the clock convenience store in India, was unveiled in 2005. The retail chain, 24Seven, owned by the KK Modi Group firm, operates at nearly 145 locations across Delhi, NCR, Punjab, Tri city, and Hyderabad.

Groceries for everyday needs, prepared meals, drinks, cosmetics and personal hygiene items, music and film, and magazines are all available at the retail chain.

Additionally, it also boasts to offer a number of services like bill payment, mobile phone recharges, movie tickets, instant photo development, and domestic and domestic and international courier services