Bestseller may explore multi-brand retail channel

While reports of Denmark-based fashion house Bestseller the owners of Jack & Jones,

Vero Moda and Only brands, deciding to part ways with its four-year old franchisee partner in India, businessman Prashant Agarwal are still doing the rounds, the buzz is that Bestseller is planning to explore multi-brand retail route with the same partner to establish a presence in the country. Earlier, it was reported that the group was unhappy with the way its brands’ business was being handled in the country.

However, as per industry insiders, the retailer is planning to apply to the Department of Industrial Policy and Promotion (DIPP) with its plan for a multi-brand apparel and fashion venture with Prashant Agarwal, Managing Director of Bombay Rayon, in the coming weeks. As per FDI norms, while Bestseller will hold the 51 percent stake, the rest will be held by Agarwal.

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, last week. But industry 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 country yet, compared to Zara, which is doing extremely well in terms of achieving its sales targets.