MUMBAI: Reliance Retail and UK-based footwear brand Clarks have terminated their joint-venture partnership inked two years ago. Sources said that differences had emerged between the two entities over the terms of the partnership and that the JV was not “working out”. Reliance Retail did not respond to queries. Clarks could not be immediately reached for comment.
As a fallout of the failed partnership, Clarks has started to close its stores in India, industry sources said. The brand, for instance, shut its stores across Inorbit Malls about 10 days back and it has also recently closed its stores housed in DLF malls, sources added. Clarks ran over 30 stores in India across cities such as Mumbai, Delhi, Bengaluru, Kolkata and Hyderabad in partnership with Reliance Retail, according to the brand’s website. The brand has stores in retail establishments like DLF, Inorbit, Lulu and Phoenix malls.
Reliance Retail, with its deep expertise in the Indian market and wide resources, has been a preferred partner for several global brands looking to enter the market. However, Clarks has been operating in India for well over a decade now and had initially been running business in the country through an equal JV partnership formed in 2011 with the Kishore Biyani-led Future Group, whose flagship brand Future Retail eventually entered bankruptcy.
Clarks’ India business is navigating disruptions at a time when a flurry of global brands are widening their footprint in the market and increasing their investments. It is not immediately clear if Clarks will seek a new India partner or operate in the market through a fully-owned local subsidiary.
