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Delays in opening the retail sector to foreign direct investment, rising interest burden and a looming economic slowdown bode ill for Pantaloon Retail, flagship venture of the Kishore Biyani-owned Future Group. Saddled with R4,200 crore debt at the end of June 2011, the company’s debt-equity ratio has touched 1.3:1, a level not seen at other retailing peers. Pantaloon, which saw such debt levels in the fiscal ending June 2009 — when the financial crisis forced discount retailer Subhiksha Trading to shut shop — had since brought it down to 1:1. Though Future Group plans to trim its rising debt-equity ratio by selling its stake in non-core businesses like Future Capital, analysts say any slowdown in the economy could spark trouble. Biyani is already on record saying opening the sector to FDI will “enable us to sell stakes to foreign retailers and make ourselves debt free”. An inter-ministerial panel recently recommendedhttp://www.financialexpress.com/news/At-R4-200-crore--Pantaloon-s-debt-in-danger-zone/842270/