Bestseller applies for FDI in Jack & Jones brand

Denmark-based fashion house, Bestseller has applied with Department of Industrial

Policy and Promotion (DIPP) for FDI in its casual wear brand Jack & Jones through United India Comforts. The proposal has been made under single brand retail segment, where up to 100 percent FDI is allowed. Bestseller has been making news of late after speculations about its split with four-year-old franchisee partner in India, businessman Prashant Agarwal.

With rumours of a split between the two, there were reports that the company was planning to explore the multi-brand retail route with the same partner to establish a presence in India. Interestingly, as per the DIPP website, Bestseller has already filed a proposal to invest in the country's single-brand retail segment. Separate applications for the three brands were filed by Bestseller United Singapore. But sources affirm that under the multi-brand venture, all three brands — Jack & Jones, Vero Moda and Only — would be sold under one roof.

While sales at Bestseller Retail India doubled to Rs 235 crores in FY13, the company posted a net loss of Rs 34 crores and hasn't achieved break-even in the yet compared to Zara, which is doing extremely well in terms of achieving its sales targets. Jack & Jones runs over 100 shop in shops and 50 exclusive brand outlets in the country.

Bestseller is a family-owned clothing and accessories company founded in Denmark in 1975 by Merete Bech Povlsen and Troels Holch Povlsen. It has 3,000 chain stores across 38 markets worldwide and its products are sold in about 12,000 multi-brand and department stores in 53 markets worldwide.