Future Lifestyle Fashions to sell identified assets after receiving lenders' nod
2 min read 10 Aug 2022, 05:50 AM ISTThe company also said that the assets contributed to revenue from operations of ₹1,386.70 crore, being 64.18 per cent of the total revenue from operations in FY21.
PremiumDebt-ridden Future Lifestyle Fashions Ltd (FLFL) on 9 August said that its board has considered and approved the proposed sale of certain identified assets of the company.
"Accordingly, based on the recommendation of the Audit Committee, the Board of Directors at its meeting held today have inter-alia considered and approved the proposal to sale, lease, rent or dispose of the Specified Assets or in any other manner as it may deem fit, at a price which shall be at least equal to book value at the relevant point of time, subject to requisite approvals of lenders, debenture holders, shareholders and other contractual approvals, if any," company in a regulatory filing.
The company also said that the assets contributed to revenue from operations of ₹1,386.70 crore, being 64.18 per cent of the total revenue from operations in FY21.
The Board at its meeting also decided to seek, inter alia, approvals of the shareholders by way of postal ballot, notice of which shall be furnished to the stock exchanges in due course.
"The proposed transaction would be initiated, after receiving of requisite approvals from lenders, debenture holders, shareholders and other contractual approvals, if any," it said.
The proposed transaction would be at a price which shall be at least equal to book value at the relevant point of time.
The transaction is proposed to be entered into with third party(ies), which will not be a related party, at a price which shall be at least equal to book value at the relevant point of time, it said.
FLFL has identified certain assets (identified as in-store retail infra assets) which are lying at non-operational stores and which cannot be used at continuing operating stores, the filing said.
FLFL has in-house retail chains Central and Brand Factory, exclusive brand outlets (EBOs) and other multi-brand outlets (MBOs of nearly a dozen apparel labels including - Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse and Urbana in its portfolio.
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FLFL was part of the 19 group companies operating in retail, wholesale, logistics and warehousing segments, which were supposed to be transferred to Reliance Retail as part of a ₹24,713 crore deal announced in August 2020.
The deal was called off by the billionaire Mukesh Ambani-led Reliance Industries Ltd in April after it failed to get lenders' support of the respective companies.
Following this, the Kishore Biyani-led retail empire is in deep financial trouble.
Its flagship firm Future Retail Ltd is under insolvency process after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted a petition against it.
(With inputs from PTI)
