New Delhi: Arvind Fashions Ltd is in talks with Reliance Retail to sell two denim brands — Newport and Ruf & Tuff, three individuals acquainted with the event mentioned.
It can be, individually, in talks with worth retailer V-Mart to sell its Unlimited division retailer chain.
Arvind Fashions has been restructuring its companies for a couple of yr, by trimming its world brands portfolio and pruning unviable shops. Last yr, it exited advertising preparations with loss-making world labels together with Izod, Gant, Nautica and Ed Hardy to concentrate on US Polo, Gap, Aeropostale, Flying Machine, and different labels.
The Bengaluru-based retailer additionally shuttered a considerable variety of its Unlimited shops and nearly exited markets in north India.
“We do not comment on market speculations,” mentioned an Arvind spokesperson when requested about plans to sell the Newport, Ruff & Tuff and Unlimited brands.
Lalit Agarwal, managing director of V-Mart, declined to remark.
A Reliance Retail spokesperson mentioned in an e mail, “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.”
V-Mart was to ink a deal to absolutely purchase the Unlimited retailer chain in March, however the nationwide lockdown in end-March has delayed it, one of many sources mentioned.
Arvind Fashions hoped to carry its enterprise on monitor this yr when Covid-19 pandemic hit gross sales at its offline shops, identical to lots of the trend retailers globally.
In May, the retailer of brands similar to Gap, US Polo, Sephora, Aeropostale and Flying Machine, deferred funds to workers owing to lowered gross sales and depleting money movement amid the lockdown.
Earlier this week, Walmart-owned Flipkart picked up a considerable minority stake in Arvind Fashions’ subsidiary Arvind Youth Brands for Rs 260 crore as a part of the house-grown e-commerce firm’s plans to strengthen its mid-market trend portfolio.
Arvind Fashions reported a consolidated internet lack of Rs 208 crore for the quarter ended March 31, in contrast to a internet revenue of Rs 21.30 crore a yr earlier. During the quarter, its gross debt ballooned to Rs 1,210 crore, a 53% leap over monetary yr 2018-19.
