Aditya Birla Fashion to enter in agreement with Forever 21 in India for $26 mn
6th July 2016Category : Life StylePublished by :Rahul Verma Reading Time : 2 Minute News Sourced : India
Aditya Birla Fashion and Retail (ABFRL) will take care of clothing brand 'Forever 21' in the Indian market for USD 26 million (around Rs 175.52 crore) transactions under MoU.
“The company has executed a business transfer agreement with Diana Retail and DLF Brands for acquisition of the business undertaking of Diana Retail... under the Forever 21 brand and also through e-commerce channel on a going concern basis, in the Indian market," reported ET. Diana Retail is the franchisee of Forever 21 brand in India.
The transaction involved acquisition of the Forever 21 Undertaking of Diana Retail with effect from July 1 through a business transfer agreement not share transfer. The consideration for acquisition is USD 26 million.
Forever 21, with a network of more than 700 stores worldwide is among the fastest growing fashion retailers in the world. Its India operations reported a turnover of Rs 262 crore in 2015-16.
Sources said the apparel company, which currently has 12 stores across Mumbai, Delhi and Bengaluru, had been dissatisfied with the pace of growth and consequently opted to team up with ABFRL.