Reliance brand fashions may soon take over 50 years old fashion house Ritu Kumar
Mumbai : Reliance Brands is set to acquire 50 years old fashion house Ritu Kumar. This information has been received by quoting sources. Reliance Brands is a unit of Reliance Retail. It is reported that Reliance Brands will acquire around 30 per cent stake of private equity firm Everstone Capital in fashion house Ritu Kumar. It will also buy a substantial part of the promoter’s holdings.
According to a source, Reliance will take an appropriate controlling stake in the fashion house and the promoters will hold a minority stake. However, no response has been received from both the companies in this regard. Ritu Kumar Fashion House owns 4 Designer Brands. These include Label, RI, Arke and Ritu Kumar Home.
When did the fashion house start
Ritu Kumar Fashion House is a 5 decade old company. The company has been looking to raise funds for the expansion for the past several years. Fashion designer Ritu Kumar started her fashion house in 1969 through a store in New Delhi. With the passage of time, this fashion house became popular for contemporary designs like suits, tunics, lehengas, ethnic jackets and bridal collections.
According to another source, Reliance Brands may announce the deal next week. With this deal, Everstone will exit from Ritu Kumar Fashion House. This Indian designer brand has many physical outlets. Everstone had invested around Rs 100 crore in 2014 to buy a stake in Ritu Kumar Fashion House. Reliance Brands is the premium to luxury brands operator of Reliance Retail. About 4 dozen global premium to luxury labels are sold under Reliance Brands. These include Burberry, Bailey, Gas, Kate Spade, Diesel, Brooks Brothers, Steve Madden, etc.