Future Lifestyle Fashions, a subsidiary of the Future Group facing bankruptcy, has garnered two resolution proposals, as disclosed by its resolution professional in a filing with the stock exchange.
The identities of the involved parties were not revealed.
The company, which owns retail properties such as Central and Brand Factory, is indebted with over INR 5700 crore to its various creditors, the major portion of which is owed to financial creditors, including 11 banks.
In May of this year, the company entered bankruptcy proceedings, leading to the solicitation of expressions of interest from interested parties for its resolution under the Insolvency and Bankruptcy Code.
In May, at the initiation of bankruptcy proceedings, the company possessed approximately 26 leased stores, a significant decrease from the 331 stores it had at the close of 2021. Emerged from the demerger of Future Retail’s fashion business, it stood as a prominent lifestyle and fashion brand, offering a range of apparel and accessories.
During the fiscal year 2022, the company disclosed a revenue of INR 2994 crore and incurred a loss exceeding INR 2500 crore, primarily due to substantial interest costs and other expenses. In the initial half of fiscal year 2023, it recorded sales amounting to INR 421 crore.
Future Retail, the primary entity within Kishore Biyani’s swiftly deteriorating retail conglomerate, is poised for liquidation as its resolution professional has submitted an application to the Mumbai bench of the National Company Law Tribunal for this purpose.
Earlier this month, the resolution plan submitted by Space Mantra, an online marketplace for construction and interiors, was rejected by Future Retail creditors. Despite being the sole bidder seeking to acquire the company in its entirety, the proposal did not garner approval.
Another group company, Future Enterprises, is currently navigating the bankruptcy court, while Future Consumer, characterized by losses and outstanding debts totaling INR 470 crore, is actively engaged in negotiations to mitigate its debt through asset sales and other strategic approaches.
During the September quarter, the board sanctioned the sale of subsidiaries ‘The Nilgiri Dairy Farm’ and ‘Aadhaar Wholesale Trading and Distribution’ for a combined sum of INR 87 crore.
