Arvind Fashions to sell Unlimited business to V-Mart for Rs 150 crore

NEW DELHI:

Arvind Lifestyle Brands

(ALBL), subsidiary of Arvind Fashions (AFL), is set to sell its value fashion retail business, Unlimited to

V-Mart Retail for Rs

150 crore in an all cash transaction.


As part of the transaction, ALBL will sell assets of the 74 retail stores, warehouses, inventory and the ‘Unlimited’ brand to V-Mart. In addition to the Rs 150 crore,

V-Mart

will pay ALBL contingent payments, based on certain milestones achieved by the latter over the next few years for these stores.

TOI

was the first to report about the trouble brewing at the loss-making stores of the brand. The development comes on the heels of Walmart-owned Flipkart picking up a stake in an AFL subsidiary for Rs 260 crore last year. AFL will utilise the amount for repayment of debt and for working capital purposes.

“We had created a scalable format with significant product capabilities in value retail, which has a large potential,” said

Shailesh Chaturvedi

, CEO, Arvind Fashions.

“However, in line with our strategy of focusing on our six high conviction brands, we decided to exit the business. This would help us put capital behind growing our six focus brands, helping generate significant shareholder value”

The sale will help AFL focus on its power brands, including US

Polo Assn

., Tommy Hilfiger, Arrow, Flying Machine, Calvin Klein and Sephora.


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