{"id":1579,"date":"2012-09-27T05:37:47","date_gmt":"2012-09-27T05:37:47","guid":{"rendered":"http:\/\/www.franchisemart.in\/franchise\/?p=1579"},"modified":"2012-09-27T05:37:47","modified_gmt":"2012-09-27T05:37:47","slug":"planet-retail-gives-up-franchise-rights-of-three-brands","status":"publish","type":"post","link":"https:\/\/www.franchisemart.in\/franchise\/planet-retail-gives-up-franchise-rights-of-three-brands\/","title":{"rendered":"Planet Retail gives up franchise rights of three brands"},"content":{"rendered":"

\"\"<\/a>Planet Retail has made its way out from the franchise agreements with three fashion brands as part of its business reformation exercise. The brands includes departmental store chain Debenhams and fashion brands Nautica and Next.
\nThe brands are not under the control the textile and apparel major Arvind Ltd\u2019s wholly owned subsidiary Arvind Lifestyle Brands Ltd.<\/p>\n

Ramesh Tainwala, chairman, Planet Retail Holdings Pvt Ltd said, \u201cI have just concluded the deal and have transferred all the rights in favour of Arvind Lifestyle Brands.\u201d
\nHe, however, did not disclose financial details. Industry experts said that the transaction value would not be very large as Planet Retail was not the owner of these brands but a franchisee for India.<\/p>\n

\u201cIt would be difficult to put a value to the size of a deal of that nature,\u201d said a retail consultant.
\nAs part of the deal, Arvind will absorb all the 300-400 employees associated with the Indian operations of the three brands, Tainwala said.<\/p>\n

Arvind Lifestyle Brands, which operates value retail chain Megamart, owns 50% stake in Tommy Hilfiger\u2019s India unit. Its existing portfolio of international fashion apparel brands includes Gant, Arrow, US Polo, Elle and Flying Machine. Tainwala said they were looking for a strategic buyer who had expertise in both manufacturing as well as retailing of fashion brands.<\/p>\n

\u201cOur business model was based on 100% imports, which was a key concern for viability of the operations. This hurdle gets mitigated now as Arvind has its own manufacturing base and they can do a better job of retailing,\u201d he said.
\nArvind Singhal, chairman, Technopak Advisors Pvt Ltd, said international brands need retailing expertise and financial investments to get traction in the Indian market.\u201cThe Debenhams departmental chain, Nautica and Next are very good brands and I think the new partners will do a great job based by leveraging on their expertise,\u201d he said.<\/p>\n

Earlier, Planet Retail has given up rights on US fashion brand Guess to Major Brands, which markets Mango and Aldo in India.<\/p>\n