Two companies have shown interest in acquiring the assets of Future Lifestyle Fashions, a segment of the distressed Future Group that became bankrupt in May this year. Expressions of interest were solicited from potential buyers under the Insolvency and Bankruptcy Code.
Presently, Future Lifestyle Fashions, which owns retail properties like Central and Brand Factory, is indebted to various creditors, including 11 banks, with an outstanding amount of approximately Rs 5,700 crore. In fiscal year 2022, the company reported revenue of Rs 2,994 crore but incurred a substantial loss of over Rs 2,500 crore. However, sales showed significant increase in the first half of FY’23, reaching Rs 421 crore.
A part of Kishore Biyani's beleaguered retail empire, Future Retail has already declared bankruptcy, and Future Enterprises has sought liquidation. Another group entity, Future Consumer, carrying dues of Rs 470 crore, aims to alleviate its debt burden through asset sales and other strategic measures. In the September quarter, the company's board approved the sale of 'The Nilgiri Diary Farm' and 'Aadhaar Wholesale Trading and Distribution' for a combined sum of Rs 87 crore.
