Debt-ridden Future Lifestyle Fashions Ltd (FLFL) on Tuesday said its board has considered and approved the proposed sale of certain identified assets of the company.
The company in a regulatory filing said the assets contributed to revenue from operations of Rs 1,386.70 crore, being 64.18 per cent of the total revenue from operations in FY21.
The board at its meeting also decided to seek, inter alia, approval of shareholders by way of postal ballot, notice of which would be furnished to the stock exchanges in due course.
"The proposed transaction would be initiated, after receiving requisite approvals from lenders, debenture holders, shareholders and other contractual approvals, if any," it said.
The proposed transaction would be at a price which would be at least equal to the book value at the relevant point of time.
FLFL has identified certain assets (identified as in-store retail infra assets) lying at non-operational stores and which cannot be used to continue operating stores, the filing said.
FLFL has in-house retail chains Central and Brand Factory, exclusive brand outlets (EBOs) and other multi-brand outlets (MBOs of nearly a dozen apparel labels, including Lee Copper, Champion, aLL, Indigo Nation, Giovani, John Miller, Scullers, Converse and Urbana in its portfolio.
FLFL was part of 19 group companies operating in the retail, wholesale, logistics and warehousing segments, which 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 in April after it failed to get lenders' support.
Following this, the Kishore Biyani-led retail empire is in deep financial trouble.
Its flagship firm Future Retail Ltd is under insolvency process after the Mumbai bench of the National Company Law Tribunal (NCLT) admitted a petition against it.