The board of Future Lifestyle Fashions Ltd. has considered and approved the proposed sale of certain identified assets of the company.
The assets contributed to revenue from operations of Rs 1,386.70 crore, or 64.18% of total revenue from operations in 2020-21, according to an exchange filing on Wednesday.
“The proposed transaction would be initiated, after receiving of requisite approvals from lenders, debenture holders, shareholders and other contractual approvals, if any,” the debt-ridden company said in the filing. The transaction would be at a price which shall be at least equal to book value at the relevant point of time. Future Lifestyle has identified for sale in-store retail infra assets that are lying at non-operational stores and cannot be used at operating stores.
Future Lifestyle was part of the 19 Future Group firms that were supposed to be transferred to Reliance Retail as part of a Rs 24,713-crore deal announced in August 2020. The deal was called off by Reliance Industries Ltd. in April this year after it failed to get lenders’ support of the respective companies.
Following this, the Kishore Biyani-led retail empire is in a financial crisis. Future Retail Ltd. is under insolvency process after the Mumbai bench of the National Company Law Tribunal admitted a petition against it.