Gianni Versace SpA, the Italian luxury fashion company has discontinued its exclusive franchise agreement with Indian partner Dinesh Sehgal headed Blues Clothing Company (BCC).

Versace has attributed the poor performance by BCC as the reason for discontinuing the deal.

Versace is planning to close its store each in Delhi and Mumbai, and all the three stores in India are offering 70% discounts across all products. However, the Italian fashion retailer does not reportedly have any plans to quit the country.

As reported in the media, BCC operated Versace stores in the Emporio Mall had been operating without electricity for not paying rents. Versace is reported to have sent a legal notice to BCC to terminate the franchise agreement.

BCC has reportedly not been clearing the stocks sent from Mian office of Versace for some months, which is yet lying in the customs department.

The annual sales of Versace in India are estimated to be around Rs 20 crores.