INTRODUCTION
Toonkidz, alternately called Toon Kidz, is a chain of branded children’s outlets started by M/s N F Retail, a partnership concern with two known partners, Mr. Venkat R V and Prathima R V, and the registered office in Coimbatore. Subsequently, they changed their office to Bangalore and eventually to Mumbai.
The company was started sometime in late 2008 or early 2009 (there have been conflicting reports about this) and was projected as an exclusive license holder of popular children’s labels such as Cartoon Network, Pogo, Nickelodeon, Marvel, (including but not limited to Ben 10, Powerfpuff girls, Hello Kitty, Doraemon, Hannah Montana, Disney, Shin Chan etc). The stated objectives were to build 150 stores across India using the franchising model, by mid 2009. (www.toonkidz.in). As of mid January 2010, they had 29 operational stores in India and an additional 12 stores in various stages of development.
MAJOR PARTICIPANTS
Mr. Venkat RV projected himself as the Managing Director of Toonkidz (N F Retail). His company was supposed to be backed by A R Knit Process and Novotex Fashions. All marketing materials supplied by the company during this time mentioned this prominently, including a declaration that the company exports 10 tons of dyed materials per day. He had mentioned that he used to work in Germany with some apparel companies and has since then come and started N F Retail. It was later learned that Mr. Venkat RV had in the past attempted to bring the German kids’ brand Whoopi to India and had failed, at some stage of development. This relevant information was never shared with most of the franchisees. While Toonkidz attracted around Rs. 10 crores in investment, Venkat RV has defaulted on payments to franchisees, merchandise suppliers, vendors, staff and other suppliers. As the sole signing authority for the N F Retail bank accounts, the entire responsibility for the investment made in Toonkidz, lies completely with him. During the second stage, after many failed promises and commitments, he gave cheques to many of his creditors which bounced. His whereabouts are currently unknown.
While the company was owned by Venkat and Prathima, the primary implementors of the project were Mr. Dinesh Nambiar, and Ms. Rajni Kaur.
Mr. Dinesh Nambiar projected himself as the Founder Director of Toonkidz (N F Retail), and the Director of Honeycomb Business Incubation (based out of Bangalore). During this stage, Dinesh Nambiar was the face of the project, and travelled extensively to meet with prospective franchisees. He constantly reiterated that N F Retail/ Toonkidz was completely backed by two successful and stable apparel manufacturing companies – A R Knit Process and Novotex Fashions. He detailed financials to indicate that the business model was viable and that the investment was secure. We have numerous mails sent by him, videos and pictures of press conferences he chaired, and other official documentation he has signed.
Ms. Rajni Kaur projected herself as the AVP of Toonkidz (N F Retail) and the VP of Honeycomb Business Incubation (based out of Bangalore). Rajni Kaur continued to support the statements made by Dinesh Nambiar with regard to N F Retail/Toonkidz and also travelled extensively with him and on her own, to meet with franchisees. She held numerous franchisee interviews, wherein she promised delivery of the model including marketing, merchandise, promotions, company support, all of which were not delivered by the company. We have numerous mails of hers supporting the environment she created.
First Stage
During the initial stages of the company’s operations, Dinesh Nambiar and Rajni Kaur were the public faces of the company. They interacted with almost all the franchisees, attracted investments, created a sense of stability about the company, and reiterated the strong backing of A R Knit process and Novotex Fashions. It is not currently known if A R Knit Process and Novotex Fashions have had any connection with N F Retail/ Toonkidz of Venkat RV. However, Venkat’s previous venture in 2006 was also named Novotex Exim (http://www.thehindubusinessline.com/2006/06/03/stories/2006060300650500.htm).
During this time, Venkat RV was completely shielded by the team and interactions were primarily limited to the team including Mr. Prakash Belavady and Mr. Vickraman Nair aka Mr. Vikraman Nair (at a later stage). The major thrust of franchisee development was done during this time. Questions regarding the company’s financial health, documentation and licenses were consistently evaded and there was little to no support from the company’s side in merchandise supplies, marketing, training, and other promotional activities.
Second Stage
In October/November 2009, Venkat RV started meeting with all the franchisees and informed them that the company was in dire straits due to the actions of Dinesh Nambiar and Rajni Kaur. Allegations were made that there was a lot of wasteful spending by this pair, including Rs. 35 Lakhs in trips across the country and abroad with leisure stays in resorts in Dubai. However, as financial control was still in Venkat’s hands, it was widely asked how these trips could have been possible without his compliance.
In November/December 2009, Venkat RV sidelined Dinesh Nambiar and Rajni Kaur and began running all aspects of operations of the company. From this period to May 2010, the availability of Venkat began to diminish. Phone calls went unanswered. He stopped operating from his offices. The rentals for the office spaces and payments for some of the infrastructure were not paid for and this led to seizure and closure of the premises by the landlords. After giving multiple promises, deadlines for turning things around and then failing to meet them, Venkat RV issued cheques to most of his creditors. Unfortunately, these cheques have mostly bounced. Since then he has been absconding and there is no known address for his current office or residential whereabouts.
Aftermath
While many of the franchisee outlets are still operational, they are operating independently and have no support from either N F Retail/ Toonkidz now any of the promoters or initial team. The investments of all the franchisee owners, payments due to the merchandise suppliers, vendors, staff and other suppliers are still pending and has led to severe problems for many people. While many stakeholders have file cases in court against each of these individuals, there is no immediate respite for them.
Vickraman Nair has proceeded to setup a new company in association with Rajni Kaur – Toonz (www.toonz.in). His continued association with the people who have destroyed investor wealth and defrauded many people of their money raises pertinent questions.
On retrospect, we shuld have insisted on more documentation:
• ID proofs such as - Passport Copies/ Pan Cards/ Election ID cards
• Partnership deed of the company
• Letter of support/ Proof of involvement of promoter companies
• Address Proofs
• Character merchandise copies
• Company Balance Sheets
• Bank Guarantees
• Police Clearance Certificates
This blog is intended to serve as warning to other investors/franchisees/suppliers and the general public about the background of the people mentioned in this blog. The final decision regarding an individual’s involvement is a matter of personal judgement. We are interested in presenting multiple facets of the story, so that your decision can be made based on information from different sources.
For additional information refer to:
http://toonkidztoonz.blogspot.com/2010/06/fraud-by-toonkidz-partners-venkat.html
Friday, July 9, 2010
Fraud by N F Retail and Toonkidz
INTRODUCTION
Toonkidz, alternately called Toon Kidz, is a chain of branded children’s outlets started by M/s N F Retail, a partnership concern with two known partners, Mr. Venkat R V and Prathima R V, and the registered office in Coimbatore. Subsequently, they changed their office to Bangalore and eventually to Mumbai.
The company was started sometime in late 2008 or early 2009 (there have been conflicting reports about this) and was projected as an exclusive license holder of popular children’s labels such as Cartoon Network, Pogo, Nickelodeon, Marvel, (including but not limited to Ben 10, Powerfpuff girls, Hello Kitty, Doraemon, Hannah Montana, Disney, Shin Chan etc). The stated objectives were to build 150 stores across India using the franchising model, by mid 2009. (www.toonkidz.in). As of mid January 2010, they had 29 operational stores in India and an additional 12 stores in various stages of development.
MAJOR PARTICIPANTS
Mr. Venkat RV projected himself as the Managing Director of Toonkidz (N F Retail). His company was supposed to be backed by A R Knit Process and Novotex Fashions. All marketing materials supplied by the company during this time mentioned this prominently, including a declaration that the company exports 10 tons of dyed materials per day. He had mentioned that he used to work in Germany with some apparel companies and has since then come and started N F Retail. It was later learned that Mr. Venkat RV had in the past attempted to bring the German kids’ brand Whoopi to India and had failed, at some stage of development. This relevant information was never shared with most of the franchisees. While Toonkidz attracted around Rs. 10 crores in investment, Venkat RV has defaulted on payments to franchisees, merchandise suppliers, vendors, staff and other suppliers. As the sole signing authority for the N F Retail bank accounts, the entire responsibility for the investment made in Toonkidz, lies completely with him. During the second stage, after many failed promises and commitments, he gave cheques to many of his creditors which bounced. His whereabouts are currently unknown.
While the company was owned by Venkat and Prathima, the primary implementors of the project were Mr. Dinesh Nambiar and Ms. Rajni Kaur.
Mr. Dinesh Nambiar projected himself as the Founder Director of Toonkidz (N F Retail), and the Director of Honeycomb Business Incubation (based out of Bangalore). During this stage, Dinesh Nambiar was the face of the project, and travelled extensively to meet with prospective franchisees. He constantly reiterated that N F Retail/ Toonkidz was completely backed by two successful and stable apparel manufacturing companies – A R Knit Process and Novotex Fashions. He detailed financials to indicate that the business model was viable and that the investment was secure. We have numerous mails sent by him, videos and pictures of press conferences he chaired, and other official documentation he has signed.
Ms. Rajni Kaur projected herself as the AVP of Toonkidz (N F Retail) and the VP of Honeycomb Business Incubation (based out of Bangalore). Rajni Kaur continued to support the statements made by Dinesh Nambiar with regard to N F Retail/Toonkidz and also travelled extensively with him and on her own, to meet with franchisees. She held numerous franchisee interviews, wherein she promised delivery of the model including marketing, merchandise, promotions, company support, all of which were not delivered by the company. We have numerous mails of hers supporting the environment she created.
First Stage
During the initial stages of the company’s operations, Dinesh Nambiar and Rajni Kaur were the public faces of the company. They interacted with almost all the franchisees, attracted investments, created a sense of stability about the company, and reiterated the strong backing of A R Knit process and Novotex Fashions. It is not currently known if A R Knit Process and Novotex Fashions have had any connection with N F Retail/ Toonkidz of Venkat RV. However, Venkat’s previous venture in 2006 was also named Novotex Exim (http://www.thehindubusinessline.com/2006/06/03/stories/2006060300650500.htm).
During this time, Venkat RV was completely shielded by the team and interactions were primarily limited to the team including Mr. Prakash Belavady and Mr. Vickraman Nair aka Mr. Vikraman Nair (at a later stage). The major thrust of franchisee development was done during this time. Questions regarding the company’s financial health, documentation and licenses were consistently evaded and there was little to no support from the company’s side in merchandise supplies, marketing, training, and other promotional activities.
Second Stage
In October/November 2009, Venkat RV started meeting with all the franchisees and informed them that the company was in dire straits due to the actions of Dinesh Nambiar and Rajni Kaur. Allegations were made that there was a lot of wasteful spending by this pair, including Rs. 35 Lakhs in trips across the country and abroad with leisure stays in resorts in Dubai. However, as financial control was still in Venkat’s hands, it was widely asked how these trips could have been possible without his compliance.
In November/December 2009, Venkat RV sidelined Dinesh Nambiar and Rajni Kaur and began running all aspects of operations of the company. From this period to May 2010, the availability of Venkat began to diminish. Phone calls went unanswered. He stopped operating from his offices. The rentals for the office spaces and payments for some of the infrastructure were not paid for and this led to seizure and closure of the premises by the landlords. After giving multiple promises, deadlines for turning things around and then failing to meet them, Venkat RV issued cheques to most of his creditors. Unfortunately, these cheques have mostly bounced. Since then he has been absconding and there is no known address for his current office or residential whereabouts.
Aftermath
While many of the franchisee outlets are still operational, they are operating independently and have no support from either N F Retail/ Toonkidz now any of the promoters or initial team. The investments of all the franchisee owners, payments due to the merchandise suppliers, vendors, staff and other suppliers are still pending and has led to severe problems for many people. While many stakeholders have file cases in court against each of these individuals, there is no immediate respite for them.
Vickraman Nair has proceeded to setup a new company in association with Rajni Kaur – Toonz (www.toonz.in). His continued association with the people who have destroyed investor wealth and defrauded many people of their money raises pertinent questions.
On retrospect, we shuld have insisted on more documentation:
• ID proofs such as - Passport Copies/ Pan Cards/ Election ID cards
• Partnership deed of the company
• Letter of support/ Proof of involvement of promoter companies
• Address Proofs
• Character merchandise copies
• Company Balance Sheets
• Bank Guarantees
• Police Clearance Certificates
This blog is intended to serve as warning to other investors/franchisees/suppliers and the general public about the background of the people mentioned in this blog. The final decision regarding an individual’s involvement is a matter of personal judgement. We are interested in presenting multiple facets of the story, so that your decision can be made based on information from different sources.
For additional information refer to:
http://toonkidztoonz.blogspot.com/2010/06/fraud-by-toonkidz-partners-venkat.html
Toonkidz, alternately called Toon Kidz, is a chain of branded children’s outlets started by M/s N F Retail, a partnership concern with two known partners, Mr. Venkat R V and Prathima R V, and the registered office in Coimbatore. Subsequently, they changed their office to Bangalore and eventually to Mumbai.
The company was started sometime in late 2008 or early 2009 (there have been conflicting reports about this) and was projected as an exclusive license holder of popular children’s labels such as Cartoon Network, Pogo, Nickelodeon, Marvel, (including but not limited to Ben 10, Powerfpuff girls, Hello Kitty, Doraemon, Hannah Montana, Disney, Shin Chan etc). The stated objectives were to build 150 stores across India using the franchising model, by mid 2009. (www.toonkidz.in). As of mid January 2010, they had 29 operational stores in India and an additional 12 stores in various stages of development.
MAJOR PARTICIPANTS
Mr. Venkat RV projected himself as the Managing Director of Toonkidz (N F Retail). His company was supposed to be backed by A R Knit Process and Novotex Fashions. All marketing materials supplied by the company during this time mentioned this prominently, including a declaration that the company exports 10 tons of dyed materials per day. He had mentioned that he used to work in Germany with some apparel companies and has since then come and started N F Retail. It was later learned that Mr. Venkat RV had in the past attempted to bring the German kids’ brand Whoopi to India and had failed, at some stage of development. This relevant information was never shared with most of the franchisees. While Toonkidz attracted around Rs. 10 crores in investment, Venkat RV has defaulted on payments to franchisees, merchandise suppliers, vendors, staff and other suppliers. As the sole signing authority for the N F Retail bank accounts, the entire responsibility for the investment made in Toonkidz, lies completely with him. During the second stage, after many failed promises and commitments, he gave cheques to many of his creditors which bounced. His whereabouts are currently unknown.
While the company was owned by Venkat and Prathima, the primary implementors of the project were Mr. Dinesh Nambiar and Ms. Rajni Kaur.
Mr. Dinesh Nambiar projected himself as the Founder Director of Toonkidz (N F Retail), and the Director of Honeycomb Business Incubation (based out of Bangalore). During this stage, Dinesh Nambiar was the face of the project, and travelled extensively to meet with prospective franchisees. He constantly reiterated that N F Retail/ Toonkidz was completely backed by two successful and stable apparel manufacturing companies – A R Knit Process and Novotex Fashions. He detailed financials to indicate that the business model was viable and that the investment was secure. We have numerous mails sent by him, videos and pictures of press conferences he chaired, and other official documentation he has signed.
Ms. Rajni Kaur projected herself as the AVP of Toonkidz (N F Retail) and the VP of Honeycomb Business Incubation (based out of Bangalore). Rajni Kaur continued to support the statements made by Dinesh Nambiar with regard to N F Retail/Toonkidz and also travelled extensively with him and on her own, to meet with franchisees. She held numerous franchisee interviews, wherein she promised delivery of the model including marketing, merchandise, promotions, company support, all of which were not delivered by the company. We have numerous mails of hers supporting the environment she created.
First Stage
During the initial stages of the company’s operations, Dinesh Nambiar and Rajni Kaur were the public faces of the company. They interacted with almost all the franchisees, attracted investments, created a sense of stability about the company, and reiterated the strong backing of A R Knit process and Novotex Fashions. It is not currently known if A R Knit Process and Novotex Fashions have had any connection with N F Retail/ Toonkidz of Venkat RV. However, Venkat’s previous venture in 2006 was also named Novotex Exim (http://www.thehindubusinessline.com/2006/06/03/stories/2006060300650500.htm).
During this time, Venkat RV was completely shielded by the team and interactions were primarily limited to the team including Mr. Prakash Belavady and Mr. Vickraman Nair aka Mr. Vikraman Nair (at a later stage). The major thrust of franchisee development was done during this time. Questions regarding the company’s financial health, documentation and licenses were consistently evaded and there was little to no support from the company’s side in merchandise supplies, marketing, training, and other promotional activities.
Second Stage
In October/November 2009, Venkat RV started meeting with all the franchisees and informed them that the company was in dire straits due to the actions of Dinesh Nambiar and Rajni Kaur. Allegations were made that there was a lot of wasteful spending by this pair, including Rs. 35 Lakhs in trips across the country and abroad with leisure stays in resorts in Dubai. However, as financial control was still in Venkat’s hands, it was widely asked how these trips could have been possible without his compliance.
In November/December 2009, Venkat RV sidelined Dinesh Nambiar and Rajni Kaur and began running all aspects of operations of the company. From this period to May 2010, the availability of Venkat began to diminish. Phone calls went unanswered. He stopped operating from his offices. The rentals for the office spaces and payments for some of the infrastructure were not paid for and this led to seizure and closure of the premises by the landlords. After giving multiple promises, deadlines for turning things around and then failing to meet them, Venkat RV issued cheques to most of his creditors. Unfortunately, these cheques have mostly bounced. Since then he has been absconding and there is no known address for his current office or residential whereabouts.
Aftermath
While many of the franchisee outlets are still operational, they are operating independently and have no support from either N F Retail/ Toonkidz now any of the promoters or initial team. The investments of all the franchisee owners, payments due to the merchandise suppliers, vendors, staff and other suppliers are still pending and has led to severe problems for many people. While many stakeholders have file cases in court against each of these individuals, there is no immediate respite for them.
Vickraman Nair has proceeded to setup a new company in association with Rajni Kaur – Toonz (www.toonz.in). His continued association with the people who have destroyed investor wealth and defrauded many people of their money raises pertinent questions.
On retrospect, we shuld have insisted on more documentation:
• ID proofs such as - Passport Copies/ Pan Cards/ Election ID cards
• Partnership deed of the company
• Letter of support/ Proof of involvement of promoter companies
• Address Proofs
• Character merchandise copies
• Company Balance Sheets
• Bank Guarantees
• Police Clearance Certificates
This blog is intended to serve as warning to other investors/franchisees/suppliers and the general public about the background of the people mentioned in this blog. The final decision regarding an individual’s involvement is a matter of personal judgement. We are interested in presenting multiple facets of the story, so that your decision can be made based on information from different sources.
For additional information refer to:
http://toonkidztoonz.blogspot.com/2010/06/fraud-by-toonkidz-partners-venkat.html
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