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On the verge of a split with its local partner, the Indian arm of Denmark-based fashion house Bestseller has applied to Department of Industrial Policy and Promotion (DIPP) to bring foreign direct investment (FDI) into its casual wear brand Jack & Jones. The proposal has been made under the single-brand retail segment, in which up to 100 per cent FDI is permitted.
The entity, United India Comforts, had applied to DIPP earlier this week.
Bestseller is reportedly in the process of ending its four-year-old franchisee agreement with businessman Prashant Aggarwal, who ran the stores of three of its brands. Earlier, Bestseller had applied to DIPP to bring FDI into its brands Vero Moda and Only, too, said sources in the know. A formal separation between the two parties would take 30-45 days, the sources said.
When contacted, Bestseller spokesperson Jesper Stubkier said: “We do not wish to comment on our future plans in India.” Sources said Bestseller was also exploring options to apply to the government to bring FDI under multi-brand retail, as it owned multiple brands. “It needs to find a partner if it has to come under the multi-brand retail segment. It is studying options,” said a person privy to company’s plans. In multi-brand retail, FDI of up to 51 per cent is allowed.
Jack & Jones runs about 100 shop-in-shops and 50 exclusive brand outlets in India. “They are studying all the possibilities, as there are challenges on the future of existing multi-brand stores that sell all the three brands, and shop-in-shops,” sources said.
Jack & Jones is one of Europe’s leading menswear manufacturers, with about 1,000 stores across 38 countries.
A number of overseas chains have applied to the government ever since the 100% FDI in single brand retailing was allowed in 2011.
The government has cleared single-brand retail proposals worth more than Rs 12,000 crore (nearly $2 billion) in the past year. The biggest among them is Swedish furniture retailer IKEA’s Rs 10,500-crore proposal. Others include Swedish apparel retail maker H&M and French company Decathlon (Rs 700 crore each). Since 2006, the government has cleared 60-70 proposals of single-brand retail after the segment was opened to foreign investors.
Bestseller is a family-owned clothing and accessories company founded in Denmark in 1975 by Merete Bech Povlsen and Troels Holch Povlsen. Bestseller has 3,000 chain stores across 38 markets worldwide and our products are sold in approx. 12,000 multi-brand and department stores in 53 markets worldwide.
