Future Lifestyle Fashions (FLFL), overseen by Kishore Biyani and responsible for Central and Brand Factory stores, has received resolution proposals from two entities, with scrap dealer Space Mantra and fashion giant Donear Industries reportedly in the mix.
Space Mantra, previously the sole applicant for Future Retail, faced rejection due to a perceived undervaluation of its Rs. 550-crore offer by lenders. Donear Industries, operating through its textile arm GBTL, initially expressed interest in acquiring Future Enterprises, an affiliate of FLFL, but ultimately refrained from submitting a resolution plan.Recent reports revealed Jindal (India), backed by the BC Jindal Group, as the sole resolution applicant for Future Enterprises.
With financial creditors claiming Rs. 2,117 crore, the resolution professional Ravi Sethia, backed by KPMG, highlighted State Bank of India’s leading claim at Rs. 467 crore. FLFL disclosed on 17th November that it had received two resolution plans but didn’t disclose the applicants’ identities. Sources indicate that neither offer appears appealing upon initial assessment.
The debt resolution process faced challenges in August after conflict-of-interest concerns arose due to a forensic auditor’s prior associations with Biyani’s companies. A Bombay High Court ruling subsequently barred the auditor and his firm from FLFL’s forensic examination.
As outlined in its FY ’22 annual report, FLFL positioned itself as the flagship fashion company within the Future Group, overseeing 180 retail outlets across various formats. Business disruptions occurred in FY ’21 due to nationwide lockdowns amid the COVID-19 pandemic. In FY ’22, the company recorded a revenue of Rs. 2994 crore but incurred losses exceeding Rs. 2500 crore, primarily attributed to significant interest expenses and other costs. Sales in the initial half of FY ’23 amounted to Rs. 421 crore.
