Walmart takes a $290 million impairment on Jabong

BENGALURU: US retail behemoth Walmart incurred a non-cash impairment charge of $290 million on account of it writing off its investment in fashion portal Jabong, Chief Financial Officer Brett Biggs disclosed in an earnings call.

When it bought Flipkart last year, Walmart attributed 77% of Flipkart Group’s $24.1 billion in assets to intangibles and goodwill. Barring its flagship brand, Flipkart owns Myntra, PhonePe and the Jabong trade names.

In 2016, Flipkart bought Jabong for $70 million in cash & has since then been struggling to figure out a definitive long-term strategy for the fashion portal.