Footwear specialist Clarks has reportedly terminated its joint venture contract with India’s Reliance Retail, leading to the potential closure of all its stores in the region. Sources familiar with the matter have indicated that disagreements over certain partnership terms prompted the decision.
According to reports, Clarks will be shutting down all its stores in India as part of an apparent 'exit strategy' from the market. Mall owners have confirmed the closures, with some stores already closed or in the process of closing.
The joint venture between Clarks and Reliance Retail, established two years ago, oversaw the operation of 32 Clarks-branded stores in India. While the closure of these stores is imminent, there is speculation that Clarks may re-enter the market in a different capacity.
One source suggested the possibility of a complete restructuring of its Indian subsidiary's operations. This move comes at a challenging time for Clarks, as recent reports indicated potential job redundancies globally due to widening losses in the year leading up to December 31, 2023.
