Lilliput Kidswear
| Company type | Private |
|---|---|
| Industry | Apparel |
| Founded | 2003 |
| Founder | Sanjeev Narula |
| Headquarters | New Delhi , India |
Key people | Sanjeev Narula (founder), CEO (name not specified) |
| Products | Children's apparel |
Lilliput Kidswear is a children's apparel brand from India, with its main office located in New Delhi, India.
History
Established in 2003 by Sanjeev Narula, Lilliput Kidswear secured a $60 million investment from Bain Capital Partners in May 2010. Following its initial public offering, allegations emerged regarding overstated revenue numbers, prompting a whistleblower to inform investors. Subsequently, Bain Capital filed a lawsuit against the auditing firm Ernst & Young Global Limited, accusing it of providing flawed advice that resulted in a $60 million loss. According to Lilliput’s CEO, Bain Capital divested from the company in 2013.
Controversy over fraud
In 2013, Lilliput Kidswear acquired garments valued at $5 million (40 Crores BDT) from 22 suppliers based in Bangladesh but failed to honor the payments. The Bangladesh government, through its Central Bank, requested assistance from the Indian government. Although the Indian Ministry of Commerce and Industry attempted to mediate the dispute, Lilliput did not clear the outstanding amounts. This default caused financial distress, leading to bankruptcy and shutdowns among the Bangladeshi manufacturers involved.