First Business News Portal in English from Nepal
KATHMANDU: Shikhar Shoes, which had carved a niche for itself in the Nepali footwear market, is at present on the verge of collapse.
The brand, which once offered bumper prizes to customers on the purchase of its shoes, is now in a financial crisis.
The company’s Managing Director Ram Krishna Prasai, who was able to at one point in time establish Shikhar Shoes as one of the leading brands in the country, has today been warned to clear his bank debt.
Century Commercial Bank has issued a 35-day notice against him to reimburse its loan taken to finance Shikhar Shoes. The bank has issued a notice that if the dues are not paid on time then it will auction his house, land and industrial estate in Kathmandu and Biratnagar to recover its loan.
After achieving tremendous success in the footwear market within a short period of time Prasai opened a factory in Biratnagar too. Initially, Shikhar Shoes had a manufacturing unit in Goldhunga of Kathmandu.
However, as competition started heating up in the market Shikhar Shoes started facing problems. On one hand the market started being flooded with cheaper imported footwear and on the other various other domestic brands started mushrooming in the country.
Moreover, the coronavirus pandemic has hit the company severely which has led to Shikhar Shoes on the verge of collapse. As per the company, it has become very difficult for it to survive the tumultuous times.
Before the COVID-19 pandemic spread in the country there used to various fairs and exhibitions of footwear brands in Bhrikutimandap and other places that used to help the companies maintain their sales. The company itself used to organize shoe exhibitions. However, due to the lockdown and prohibitory orders this year, those opportunities have all disappeared.
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