Pantaloon steps out of Gini & Jony

KISHORE Biyani’s Pantaloon Retail (PRIL) is learnt to have operationally withdrawn from Gini & Jony, one of the first apparel brands that Mr Biyani invested in. According to sources, while PRIL would continue to have a financial arrangement with Gini & Jony, it’s in the process of severing operational ties. While PRIL had invested in Gini & Jony, the idea behind the move was that the brand would drive business on its own. However, sources say, the two were not able to work in a cohesive manner and the brand became dependent on Pantaloon’s network, to the extent that PRIL had to depute people from its top management, including the CFO, to take care of the functioning of the brand. When contacted by ET, PRIL MD Kishore Biyani said, “I am not aware of any such development.” Gini & Jony is a lifestyle kids’ fashion brand, catering to the 2-16 age group. The brand is sold through exclusive Gini & Jony stores as well as Pantaloon stores. Gini & Jony Freedom wear, GJ Jeans and Palmtree are three brands under the Gini & Jony brand umbrella. Apart from PRIL, which has invested in the front-end of the business, Gini & Jony has also attracted investment from Anil Ambani’s Reliance Capital for its manufacturing arm. The brand was incorporated by the Lakhani brothers in 1987 which started an aggressive foray in retail in 1996. At present, the chain has 13 franchisees operated stores, 18 shop in shops and a network of 80 dealers. It is felt that PRIL’s withdrawal from day to day operations will slow down the rate at which Gini & Jony has been expanding operations. “It may have some repurcussions, particularly because it has plans to enter new formats in the near future,” a source pointed out. One such new format on the anvil is Chocolate, a multi-brand format which would retail other apparel brands in addition to Gini & Jony.

Courtesy: EconomicTimes
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