According to sources close to the development, after the two-year JV, differences over some conditions of the shareholders’ agreement were reasons for the break-up of business between Reliance Retail, retail arm of Reliance Industries, and British shoemaker Clarks.
This joint venture was Clarks Reliance Footwear, which had over 30 exclusive stores. These stores were located in New Delhi, Mumbai, Bengaluru, Lucknow, Hyderabad, and Chennai— all operating with the name Clarks. These stores are now being closed as the partnership now stands dissolved, pointed out the source.
Clarks had earlier tied up with Kishore Biyani’s Future Group and entered India through a 50:50 JV. That partnership, called Clarks Future Footwear, was dissolved after Future Group ran into financial trouble.
Clarks had also entered into a joint venture with the Reliance Brands Limited, a subsidiary of Reliance Retail that markets host of foreign brands in India. Incorporated in 2007, RBL brings and nurtures global brands in luxury-to-premium segments in fashion and lifestyle.
They have created lines for global elite labels; their portfolio includes work for Armani Exchange, Burberry, Canali, Coach, Diesel, Dune London, Emporio Armani, Gas, Giorgio Armani, Hamleys, Hugo Boss, Jimmy Choo, Michael Kors, Versace, Villeroy & Boch, and West Elm.
