In an attempt to recover outstanding payments, footwear major Bata India Limited has restricted credit sales to its wholesale distributors.

The company, which is a subsidiary of Canada-based Bata Shoe Organisation, claims that overdue payments from wholesalers contributed to the Rs30 million (US$640,000) loss recorded by the business in the first quarter of the current financial year.  

Low sales and poor consumer demand are said to be the reasons why many wholesalers have been unable to pay Bata India. The company channels a considerable portion of its products through wholesalers, while the remainder is sold through its own retail outlets.

To help stem the losses within the business, Dean Turner has been appointed as the regional chief financial officer for India, Bangladesh and Sri Lanka.