Footwear specialist Clarks is understood to have terminated its joint venture contract with India’s Reliance Retail which could result in the closure of all of its stores in the region.
It is believed that the two companies made the decision following “substantial disagreements” over certain terms of their partnership, sources familiar with the matter told Franchise India.
The media outlet said that as a result, Clarks will be closing all its stores in India, with one insider stating that the move comes as part of an “exit strategy” from the market.
Mall owners are believed to have confirmed the closures, with some stating that the brand had either shuttered stores already or were beginning the process of doing so.
Clarks’ joint venture with Reliance Retail, which was initially struck up two years ago, saw the latter operate 32 Clarks-branded stores in India.
Franchise India did note that there was speculation that Clarks could re-enter the market in a “new form”, with one source further suggesting that there was possibility of a full restructuring to the operations of its Indian subsidiary.
Clarks has already been facing a tricky period in other international markets. Recent reports stated that 150 global job roles at the company were at risk of redundancy in June as the group’s losses widened further in the year to December 31, 2023.