The Bengaluru-based retailer also shuttered a substantial number of its Unlimited stores and virtually exited markets in north India.
Arvind Fashions Ltd is in talks with Reliance Retail to sell two denim brands – Newport and Ruf & Tuff, according to media reports. It is also, separately, in talks with value retailer V-Mart to sell its Unlimited department store chain.
Arvind Fashions has been restructuring its businesses for about a year, by trimming its global brands portfolio and pruning unviable outlets. Last year, it exited marketing arrangements with loss-making global labels including Izod, Gant, Nautica and Ed Hardy to focus on US Polo, Gap, Aeropostale, Flying Machine, and other labels.
The Bengaluru-based retailer also shuttered a substantial number of its Unlimited stores and virtually exited markets in north India. In May, the retailer of brands such as Gap, US Polo, Sephora, Aeropostale and Flying Machine, deferred payments to staff owing to reduced sales and depleting cash flow amid the lockdown.
Walmart-owned Flipkart picked up a minority stake in Arvind Fashions’ subsidiary Arvind Youth Brands for Rs 260 crore as part of the home-grown e-commerce company’s plans to strengthen its mid-market fashion portfolio.
Arvind Fashions reported a consolidated net loss of Rs 208 crore for the quarter ended March 31, compared to a net profit of Rs 21.30 crore a year earlier. During the quarter, its gross debt ballooned to Rs 1,210 crore, a 53% jump over financial year 2018-19.