Wednesday, March 21, 2007

Future Group and Planet Retail likely to separate

The future looks bleak for the joint venture between the Future Group and Planet Retail Holdings. It is likely that Future Group will offload its 49% stake in Planet Retail Holdings and exit the joint venture completely. While neither company wanted to comment on the situation, sources close to the matter felt that neither company was being able to take full advantage of the joint venture.

At the time of the joint venture, Future Group was looking to tie up with an international partner so that it could bring in some International brands while Future would take care of the real estate and administrative issues. The Future Group is well established now and in bringing in brands such as Lee Cooper, Alpha Airports, Etam of France, and is in the process of launching Starbucks. Planet Retail has so far been focusing mostly on European brands and has brought in Marks and Spencer, Guess, Next, Body Shop, Speedo, Converse, Debenham, Callaway etc and has built up its own network of real estate, thus relying less on Future.

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