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Future Retail (FRL) asks Amazon to fund for to repay its lenders avoiding FRL default

23 January 2022, Mumbai:

In a letter to Amazon, the Kishore Biya ni-promoted Future Retail (FRL) has asked the US e-commerce giant for Rs 3,500 crore by January 24 in order to repay its lenders and avoid default. FRL, which operates the Big Bazaar chain of hypermarket stores, is required to pay its lenders the sum by January 29, failing which it will be classified as a non-performing asset (NPA).

Future Group urges Singapore court to review ruling in Amazon case -  BusinessToday

The company is set to default on the payment, said people in the know of the matter.

The cash-strapped retailer, currently entangled in a bitter legal battle with Amazon over its proposed sale of assets to Reliance for Rs 25,000 crore, had missed the due date that was on or before December 31st,2021.

Credits: TOI 23-01-2022

 

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Future Retail Ltd (FRL) not in a position to make of past-due debt

22 January 2022, Mumbai:

Future Retail Ltd (FRL) isn't in a position to make a payment on 35 billion rupees ($471 million) of past-due debt before the grace period expires.

Future Retail Ltd. isn’t in a position to make a payment on 35 billion rupees ($471 million) of past-due before the grace period expires and will also miss an upcoming $14 million bond coupon deadline, according to people familiar with the matter.

Its dollar bond fell following the news, suffering its biggest decline in about three weeks on Friday.

Big Bazaar - Wikipedia

Embroiled in a legal dispute with Amazon.com Inc. that has damaged its ability to raise funds, the Mumbai-based retailer is coming up against two key milestones that will test creditors’ faith after its onshore was restructured during the pandemic.

Already missed a Dec. 31 deadline to lenders, Future has until the end of this month to come up with the money for the rupee-denominated  But it won’t be able to do so, the people said, asking not to be identified because the discussions are private.

The company will also not be able to make a coupon payment due Jan. 22 on its $500 million bond, according to the people.

A spokesman for the company didn’t immediately respond when contacted by Bloomberg by both email and telephone on Thursday.

BUSINESS STANDARD (The news article has not been edited by DFU Publications staff)

 

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Future Retail Ltd (FRL) not in a position to make of past-due debt

Budget wish list 2022: IKEA appels for rollout of 'National Retail Policy'

15 January 2022, Mumbai:

In its Budget wishlist, IKEA India also called for reduction of GST rates "on products that are basic to life at home” and the lowering of customs duties on good quality furniture and home products.

Swedish furniture and home furnishing retailer IKEA on Friday said it is looking forward to the rollout of India’s national retail policy, bringing offline and online retail into a single policy framework and reducing the compliance burden.

In its Budget wishlist, IKEA India also called for the reduction of GST rates "on products that are basic to life at home” and the lowering of customs duties on good quality furniture and home products.

IKEA - Wikipedia

"The economic impact of the pandemic on the income of people in India must not be underestimated. To stimulate demand, it is important that money is increased in the hands of people and products remain affordable,” IKEA India CFO Preet Dhupar said in a statement.

As a result of the pandemic, she said, "We also see life at home take an increasing significance as hybrid work models will continue to emerge in the future.”

Stating that the retail sector has played an important role in the lives of citizens during the pandemic, she said, "We look forward to the roll-out of the National Retail policy, bring offline and online retail into a single policy framework, reduce the compliance and regulatory burden, give industry status to retail along with financial incentives to large scale projects.”

MONEY CONTROL

 

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Budget wish list 2022: IKEA appels for rollout of 'National Retail Policy'

Shoppers Stop turns around in Q3FY22

22 January 2022, Mumbai:

Shoppers Stop Limited has reported Consolidated financial results for the period ended December 31, 2021.

Financial Results (Q3 FY2022) - QoQ Comparison

The company has reported total income of Rs. 972.65 crores during the period ended December 31, 2021 as compared to Rs. 709.63 crores during the period ended September 30, 2021.

The company has posted net profit / (loss) of Rs. 77.32 crores for the period ended December 31, 2021 as against net profit / (loss) of Rs. -3.58 crores for the period ended September 30, 2021.
 

The company has reported EPS of Rs. 7.05 for the period ended December 31, 2021 as compared to Rs. -0.33 for the period ended September 30, 2021.

Financial Results (Q3 FY2022) - YoY Comparison

The company has reported total income of Rs. 972.65 crores during the period ended December 31, 2021 as compared to Rs.746.45 crores during the period ended December 31, 2020.

The company has posted net profit / (loss) of Rs.77.32 crores for the period ended December 31, 2021 as against net profit / (loss) of Rs.-25.11 crores for the period ended December 31, 2020.

The company has reported EPS of Rs.7.05 for the period ended December 31, 2021 as compared to Rs.-2.75 for the period ended December 31, 2020.

Financial Results (9 Months Ended FY2022) - YoY Comparison

The company has reported total income of Rs.1951.78 crores during the 9 Months period ended December 31, 2021 as compared to Rs.1268.50 crores during the 9 Months period ended December 31, 2020.

Hit Hard By Second Wave, Shoppers Stop Expects A Recovery In Q2FY22

The company has posted net profit / (loss) of Rs.-31.15 crores for the 9 Months period ended December 31, 2021 as against net profit / (loss) of Rs.-243.06 crores for the 9 Months period ended December 31, 2020.

The company has reported EPS of Rs.-2.85 for the 9 Months period ended December 31, 2021 as compared to Rs.-27.26 for the 9 Months period ended December 31, 2020.

Shares of Shoppers Stop Limited was last trading in BSE at Rs. 361.45 as compared to the previous close of Rs. 350.35. The total number of shares traded during the day was 13766 in over 1062 trades.

The stock hit an intraday high of Rs. 365.00 and intraday low of 346.25. The net turnover during the day was Rs. 4888853.00.  

EQUITY BULLS (The news article has not been edited by DFU Publications staff)

 

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Shoppers Stop turns around in Q3FY22

Fabindia, Ethnic wear brand IPO: Readies to file DRHP with SEBI ongoing week, as per sources

19 January 2022, Mumbai:

Fabindia IPO: The company is likely to file the draft red herring prospectus (DRHP) for its IPO worth Rs 4,000 crore with markets regulator SEBI this week, sources have told CNBC-TV18.

AGS Transact Tech IPO opens for public subscription (Reuters)

Ethnic wear retail store chain Fabindia is likely to file preliminary papers with the markets regulator Securities and Exchange Board of India (SEBI) this week for its initial public offering (IPO), sources told CNBC-TV18 on Tuesday.

Fabindia IPO aims to raise over Rs 4,000 crore via a combination of fresh issue of equity shares and an offer for sale (OFS). While the fresh issue shall be worth more than Rs 500 crore, OFS of shares will amount to Rs 3,500 crore, the sources said.
 
KEY HIGHLIGHTS
  • It is likely to file the draft red herring prospectus (DRHP) for its IPO 
  • IPO worth Rs 4,000 crore with markets regulator SEBI this week, say sources
  • It aims to raise over Rs 4,000 crore via a combination of fresh issues of equity shares & an offer for sale (OFS)
  • It has 311 stores in 118 cities Across Pan-India & 14 overseas stores
 
According to the people cited above, Fabindia is looking at a valuation of nearly Rs 20,000 crore via its fresh issue.
 
CNBC-TV18 has written to Fabindia to confirm the development and the company’s response is awaited.
 
The company will use the proceeds from the IPO for growth, expansion, and the scaling-up of its e-commerce business.
 
A source had told business daily Livemint in December 2021 that Fabindia receives 10-15 percent of its sales from its e-commerce 
business and wishes to grow its online presence. Meanwhile, it also plans to add stores in view of the increased footfall after the COVID-19 pandemic.
 
As per earlier reports, PremjiInvest, an investor in Fabindia, is expected to sell a part of its stake in the company. The firm is backed by a battery of investors, including Lighthouse Funds (funds managed by Axis Alternative Asset Management), Kotak Securities, Infosys co-founder Nandan Nilekani and his wife Rohini Nilekani.
Trouble Analysing The IPO Offer Document-1 | Holistic investment planners,  financial planning Chennai, Private wealth management Chennai
 
Fabindia has 311 stores across 118 cities in the country and 14 international stores. The company sells garments, home furnishings, furniture, gifts, jewellery, organic food, and personal care products.
 
Established in 1960 by John Bissell, the company sources its products from villages of India and showcases handloom textiles and furniture to the world. According to the firm’s website, it currently connects more than 55,000 rural producers to the urban markets. The company also runs its own school with nearly 500 students.
cnbctv18.com (The news article has not been edited by DFU Publications staff)
 

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Fabindia, Ethnic wear brand IPO: Readies to file DRHP with SEBI ongoing week, as per sources

Amazon India looks to block sale of Future Group's small-format stores

22 January 2022, Mumbai:

Amazon Offers Financial Help In Letter To Cash-Strapped Retailer.

Sale Without Consent: Would Be Violation

Future Group owes 14,000-15,000 crores to lenders as part of the one-time restructuring scheme signed between the retailer and the banks.

Amazon-FRL Case : Delhi High Court To Proceed With Single Bench Order If No  Stay Granted By SC To Future Group

But the group failed to honour the payment of the first tranche of Rs 3000 crores that were due at the end of the year.

Lenders are looking to sell Future Detail's small-format stares-Everyday and Heritage Fresh-to recover the dues.
Credits: TOI dt 21-01-2022

 

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Amazon India looks to block sale of Future Group's small-format stores

The National Company Law Appellate Tribunal (NCLAT), refrained from granting Interim relief to Amazon

14 January 2022, Mumbai:

The National Company Law Appellate Tribunal (NCLAT) on Thursday refrained from granting Interim relief to US e-tailer Amazon in its plea challenging a Competition Commission of India (CCI) order that temporarily suspended the approval for its purchase of 49% stake in Future coupons (FCPL), an unlisted Future Group company.

Images and videos | Amazon.com, Inc. - Press Room

Amazon has hinged its legal battle on the FCPL investment to block Future Group's sale of assets to Reliance Retail for Rs 25,000 crore Amazon had approached NCLAT on January 8 to challenge the CCI order after a division bench of the Delhi high court stayed ongoing arbitration proceedings before a Singapore tribunal.
Source TOI dt 14-01-2022

 

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The National Company Law Appellate Tribunal (NCLAT), refrained from granting Interim relief to Amazon

The Shopping Centres Association of India (SCAI) encourages mall owners to support its store tenants

17 January 2022, Mumbai:

The Shopping Centres Association of India is sure that mall owners will offer shopkeepers relief as retail limitations to combat the third wave of Covid-19 saw malls shut down to varying degrees across the country.

"This is the third time it's happened, and in the previous two rounds, developers and shopping centres stood behind their tenants and shops," SCAI director Abhishek Bansal told the Press Trust of India.

"They'll stand with their partners in this third wave as well so that everyone gets through this."

Despite SCAI's assurances, many retailers are concerned about the new, rapidly growing retail restrictions, which come just as the wedding season approaches.

A Blueprint for Qualifying Retail Tenants for Shopping Center Leasing -  Commercial Real Estate Training Online

This is a time of year when apparel and jewellery stores hope to make some of their best sales of the year, and the cancellation of weddings and the reduction of business hours will undoubtedly stymie this.

Many mall owners offered discounts and rent waivers to store owners during the initial and second waves of the virus, and some malls also offered discounts and revenue share models during the recovery phases.

However, other malls faced huge debt obligations and were unable to give big reductions in order to avoid defaulting on the loans. 

Reduced operation hours affect not only fashion and lifestyle businesses in malls, but also eateries in food courts and multiplex operators. SCAI is convinced that mall owners would support these businesses in the same way they have supported them.

"The third wave of Covid has once again put businesses under stress," said Kumar Rajagopalan, CEO of the Retailers Association of India, according to ET Bureau. "Different sections of the country have different rules for dealing with it."

This means that merchants and malls will communicate to one another and try to come up with new arrangements to help them weather the storm."

 

 

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The Shopping Centres Association of India (SCAI) encourages mall owners to support its store tenants

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