Textile major Arvind Fashions is planning to return the licenses of three international brands from its portfolio to their respective brand owners. The move follows dismal performance by these brands which failed to match the firm’s expectations.
The three fashion brands include Gant, Nautica and Aeropostale, all of which have been in Arvind’s portfolio for the past few years. Discussions are already underway to shut down the exclusive stores and the firm maintained that till the time the licence expires, the brands are likely to be available exclusively on Flipkart.
Arvind has 28 global brands available across 1,300 stores. The company said that it regularly assesses its portfolio and focuses on brands that create long-term value.
The sources asserted that talks between Arvind and Flipkart were initiated earlier this year and the matter is expected to be finalised in the next few months.
In an investor presentation last month, Arvind had outlined three segments where it believes it has the strength to be the leader. These are premium innerwear brand US Polo Assn, premium kidswear brand Gap and premium beauty brand Sephora.
Nautica has been struggling for some time on the global stage as well. Both Nautica and Aeropostale are owned by New York-based Authentic Brands Group.