Future Lifestyle Fashions (FLF) said on Thursday that IDBI Trusteeship Services has invoked the pledge it made on investments in FLFL Lifestyle Brands (FLBL) and nearly a dozen other associate firms, after FLBL failed to redeem ₹450 crore of nonconvertible debentures.
FLF is a part of the Future Group and owns department chain Central, discount store format Brand Factory, and apparel labels including Cover Story, aLL, Ancestry and Indigo Nation.
The pledge included the entire investments of FLF in entities held by its wholly-owned subsidiary FLFL Athleisure, associate firm FLBL, joint venture company Clarks Reliance Footwear and two investee companies – SSIPL Retail and Holii Accessories, it said in a regulatory filing.
FLBL holds investments in several brands including Mineral, Turtle and Celio Future.
“Consequent to the invocations, the above entities ceased to be wholly-owned subsidiaries and associates of the company. With regard to the joint venture status, the same would continue, as the agreement continues with the FLBL and the company,” the statement added.
Meanwhile, Future Enterprises on Thursday told stock exchanges that its deal to sell a 25% stake in insurance business to joint venture partner Generali of the Netherlands for ₹1,266 crore has been completed on May 5.
Future Enterprises said it has received approvals from the governmental and the regulatory authorities for the stake sale.
FLF is planning to sell off a few fashion brands in its portfolio to raise ₹1,000 crore and pare its debts.
