biyani: Kishore Biyani plans to sell some assets, repay part of the debt
Discussions are underway at the Mumbai-headquartered conglomerate to rescue several Future Group companies such as Future Enterprises (FEL), Future Lifestyle (FLL), Future Consumer and Future Supply Chain through a combination of debt restructuring and sale of key assets, three people said. informed on the subject.
The demise of the proposed deal with Future-Reliance also means Biyani, once hailed as the Sam Walton of India, is out of the anti-competition clause that barred him and his family members from reinstating. retail space for a period of 15 years. years.
“Of the debt of around Rs 29,000 crore owed by the group, FRL owes around Rs 18,500 crore, while FEL owes Rs 5,500 crore. The sale of Future Generali generates about Rs 3,000 crore, which will be used to partially pay FEL dues,” a source said.
FEL manufactures and supplies fashion apparel to group outlets under FLL, which is home to brands such as Central and Brand Factory. While Reliance Industries (RIL) took control of more than 800 stores of the group for non-payment of rents, Biyani is left with 250 stores including Central, Brand Factory, ALL and others, which he plans to revive, said sources.
“The group plans to sell the ALL chain, which sells plus size clothing, for around Rs 1,000 crore. The sale of the Cover Story brand generates around Rs 250 crore. This proceeds will be used to partially pay FLL dues, which are set at around Rs 2,500 crore,” a source said. “Banks, however, will have to take a call on the restructuring.”
The remaining companies, Future Consumer, which owns brands such as Foodpark, CareMate and Desi Atta and the logistics arm of the Future Supply Chain group have a combined debt of around Rs 1,700 crore. While a spokesperson for Future Group did not respond to questions from TOI, a person familiar with the developments said both companies are asset-heavy and offer good prospects for business continuity.
On April 23, RIL canceled the Future-Reliance deal as the majority of Big Bazaar’s parent company secured lenders voted against the takeover.