Raymond shuts down Manzoni stores

Raymond has shut down its Manzoni unit. Manzoni, was a

premium formal menswear brand. It had entered the market in 2000. A Manzoni suit cost Rs 18,000 to Rs 70,000, and a shirt Rs 2,000 to Rs 10,000. Four out of the five exclusive outlets of Manzoni have been closed but the brand will continue to be sold at The Raymond Shop stores till stocks last. The four shut stores were in Mumbai and Kolkata. The fifth store is in Delhi. The signature brand Raymond will offer what Manzoni offered. In an attempt to consolidate its existing brands, the company has started ready- made garments under Raymond Premium Apparel and will focus on the core brands, Raymond, Park Avenue, Parx and Color Plus.

In the recent past, Raymond has closed a number of brands including children’s wear brand Zapp! and home textile Be:Home. It wound up mass segment Notting Hill in metros and large cities and confined sales to Raymond stores in small towns. Raymond plans to open another 400 to 500 flagship shops in three years, with an investment of about Rs 400 crores. The focus will continue to be on deeper penetration in small cities. If 100 stores come up in Tier I and II cities, 400 will come up in smaller ones. Raymond has a total of 750 stores. Besides with an intention to wipe its net debt of Rs 1,200 crores Raymond’s is also in the process of monetizing the 120 acres of land it owns in Thane, near Mumbai, which will include a complete or a part-sale in phases. The land monetization could generate Rs 1,400-1,600 crores of cash.