In a recent move, Kishore Biyani-led Future Lifestyle Fashions has recently split off one of its leading brand Lee Cooper into a new step-down subsidiary named Future Specialty Retail. Further the company has also planned to issue Rs 250 cr of compulsory convertible preferential shares to this new fully-owned department.
This fund injected will result in the promoters shedding off 26 per cent of the brand value of Lee Cooper, which is currently pegged at Rs 1,000 crore. The company in a BSE filing said it’s another fully-owned subsidiary, Future Trendz, continue its fashion retail business and related activities.
The new formed Future Specialty Retail was formed with a subscription amount of Rs 5 lakh. Currently the fashion wing of Future Group runs various brands including Central, Brand Factory, Indigo Nation, Lee Cooper, Sculler and Clarks. The company has also diluted its stakes in Biba, AND and Celio in the past however, the company still holds a noteworthy stake in brands such as Clarks, Tresmode, Giovani etc.
As per Future Group’s Chief Executive Kishore Biyani the company would target a revenue of Rs 75,000 crore to Rs 1 trillion, from the current Rs 20,000 crore. The company is also focusing on food, fashion, general merchandise and home categories.