The resolution professional of Future Retail, Deloitte India-backed Vijaykumar V Iyer, has invited expressions of interest (EoIs) from prospective resolution applicants for one or more of its assets by April 7, 2023. Interested bidders can choose to bid for the entire company or specific clusters. The resolution professional has announced two options for submitting EoIs: option I covers the entire FRL, including its subsidiaries, while option II allows bidders to choose one or more of the five clusters.
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Cluster I consists of FRL’s standalone business, which is further categorized into zones for large and small format stores. Under this cluster, bidders can submit their EoIs or resolution plans for specific zones. Cluster II covers FRL’s equity stake in TNSI, the holding company of TNSI Retail, which oversees the WHSmith Business and Welcome Retail. Cluster III focuses on the Foodhall business, including the brand, related business assets, and operational stores. Cluster IV covers inventory and fixed assets in various locations, while Cluster V includes residual entities, assets, investments, and brands not covered by the preceding clusters.
The Bank of India initiated insolvency proceedings against FRL after it defaulted on its loans, and Reliance’s talks to acquire FRL and 18 other Future group companies for Rs 24,713 crore fell through. The company plans to announce a list of prospective resolution applicants by April 13, and shortlisted bidders will have until May 15 to submit resolution plans. As of February 16, 2023, the resolution professional has received claims totaling Rs 21,554 crore from financial creditors, with Bank of New York Mellon being the largest creditor, according to documents on the FRL website.
