Alok Industries, the $2-billion textile major, has started the process to sell UK retail chain Store Twenty One, which it had acquired five years ago. The move tracks the selloff activity by Indian organizations of their overseas assets as the weakening global economy impacts business. The sale is part of Alok’s strategy to focus on sustainable profit growth oriented units, sources said.

Established in London in 1932, Store Twenty One has evolved from being a third-party manufacturer to retailers like Marks & Spencer to an apparel and lifestyle chain, with nearly 200 stores in England, Scotland and Wales. Clothing retailers in UK are grappling with low sales that are hurting their earnings. Alok’s management has been closing down unprofitable outlets as part of the company’s on-going cost-cutting and restructuring efforts. Selling the UK unit will help Alok cut debt, the sources said. The textile firm has a long-term debt-equity ratio of almost 2:1.

Analysts, however, said that though the selloff plan is good, it will be difficult to execute it given the challenging market environment. The Jiwarjkas-controlled Alok, which counts Macy’s, JC Penney and Nordstrom among its clients, had purchased the retail chain from Hamsard 2353 Ltd, owned by a group of private investors, in 2007.

The country’s largest fully integrated textile company is getting out of the retail venture to focus on its strategic operations from which it derives the bulk of its revenues. “Within the overall scheme of business, retail forms a small part,” one of the sources said. Apparel fabrics, especially woven, contribute 59% to Alok’s annual sales, followed by polyester yarn at 25%.