Future Lifestyle Fashion revival plan starts after Reliance acquisition deal fizzles
27 April 2022, Mumbai:
Future Group has started the revival process for apparel firm Future Lifestyle Fashions (FLF) after Reliance stalled a deal to buy the retailer’s assets.
As a part of this revival process, FLF plans to raise Rs 1000 crore by selling a few fashion brands in its portfolio.
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The company has already finalized a deal to sell the fast-fashion brand Cover Story for Rs 200 crore and will work with banks and existing investors to restructure loans.
It plans to monetize assets to continue operating smoothly.
Reliance Industries (RIL) recently stalled a deal to purchase Future Group's assets following the rejection of secured lenders to the proposal.
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Announced in 2020, the Rs 24,713-crore acquisition plan resulted in a protracted legal battle between Amazon and Future Group in Supreme Court as well as an arbitration tribunal in Singapore.
With the deal falling off, Shailesh Haribhakti, Chairperson and Independent Director, Future Lifestyle Fashions, resigned on April 22. 2022.
In a letter to FLFL, Haribhakti said, the volatile, complex and unpredictable legal and financial circumstances in the company were reasons behind his quitting the company.
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