Bankrupt Future Lifestyle Fashions, part of the Future Group, has received two resolution plans, its resolution professional said in an exchange filing.
The names of the parties were not disclosed.
The company, which owns retail properties such as Central and Brand Factory, owes over ₹5700 crore to its various creditors, the bulk of the dues to financial creditors that include 11 banks.
The company went into bankruptcy in May this year and subsequently, expressions of interest were invited from interested parties for its resolution under the Insolvency and Bankruptcy Code.
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In May, when bankruptcy proceedings started it had about 26 leased stores, down from the 331 stores at the end of 2021. Created out of the demerger of the fashion business of Future Retail, it was a leading lifestyle and fashion brand selling apparel and accessories across the spectrum.
In FY22 the company reported revenue of ₹2994 crore and a loss of over ₹2500 crore, burdened with heavy interest costs and other expenses. In the first half of FY23 it reported sales of ₹421 crore.
Future Retail, the flagship of Kishore Biyani’s rapidly disintegrating retail empire, is already set to go into liquidation with its resolution professional filing an application for the same with the Mumbai bench of the National Company Law Tribunal.
Earlier this month, Future Retail creditors rejected the resolution plan submitted by Space Mantra, an online marketplace for construction and interiors. It was the only resolution applicant that had placed a bid for the company as a whole.
Another group company Future Enterprises is also in the bankruptcy court, while Future Consumer, a loss-making company and debt defaulter with dues of ₹470 crore is negotiating to reduce its debt through asset sales and other strategies.
In the September quarter, the board approved sale of subsidiaries ‘The Nilgiri Dairy Farm’ and ‘Aadhaar Wholesale Trading and Distribution’ for an aggregate amount of ₹87 crore.