Premier Brands pulls out of Games contract

Having threatened to pull itself out of the Games on four occasions in the past due to various delays,Premier Brands,the company contracted to produce merchandising for the sports event...

Having threatened to pull itself out of the Games on four occasions in the past due to various delays,Premier Brands,the company contracted to produce merchandising for the sports event,finally withdrew from its contract on Friday.

Premier,which came on board on May 19,says the four delays have cost the company huge losses. Items were meant to go on sale when the Queens Baton Relay entered India on June 25.

The Commonwealth Games Organising Committee,however,says the final contract was not signed with Premier Brands as the company kept asking for changes in the contract.

The contract was signed on May 19 with a minimum profit guarantee of 15-20 per cent. With a delay of three months,our profit will come down to Rs 3 crore against an investment of Rs 13 crore. We cannot incur such huge losses, chairman of Premier Brands Suresh Kumar said.

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