The Hindu Business Line : Fabindia in talks to acquire UK womenswear retailer

LONDON: Fabindia, an Indian retailer specialising in ethnic Indian design and fabrics, is in talks with East, UK's bohemian womenswear retailer that pioneered the sale of Indian fashion garments.

The talks, held amid a severe downturn in high street sales, were thought to have broken down over a disagreement on East's value but leading investors in the British company feel the deal could still be revived, The Sunday Telegraph reported.

A deal with Fabindia could make sense. Fabindia was set up in 1960 by John Bissell, a former buyer for Macy's, in New York, initially to export Indian handloom textiles adapted to western tastes. It now has 92 stores selling men's and women's garments, h ousehold furnishings, pottery food and handicrafts.

WCP Mauritius Holdings, run by James Wolfensohn, the former president of the World Bank, paid $11 million for a six per cent stake in Fabindia last year, the report said.

East was founded in 1994 by former Monsoon staff Clive Pettigrew, Penny Oliver and Jonathan Keating to sell women's clothes based on Jaipur textiles and fashions.

Fabindia's interest in East follows recent investment in Britain by Indian companies. Tata bought steel maker Corus in 2006 and Jaguar and Land Rover last year, this year Religare, the financial services firm, paid £50 million for Hitchens, Harrison, Lon don's oldest independent stockbroker. - PTI

Prev: IBM targeting infrastructure cos
Next: Beljino to set up manufacturing plant in Kerala

Business Line | NUS Index |


Related Topics Advertising Awards & Honours Brands Channels and Franchises Customer Relationship Management Direct Marketing IPR Market Shares Marketing Research New Products & Services Online Marketing People Promotions & Offers Retailing Rural Marketing Standards & Benchmarks Strategy Trends