The board of directors of Future Lifestyle Fashions at its meeting on September 20, 2021 took note of the update on Future Specialty Retail, hardware subsidiary.
Future Specialty Retail (FSRL), the Company’s major subsidiary, had received notices of termination of the Lee Cooper apparel and footwear brand use agreements from the license owner in the event of default. payment due to financial impact in connection with the COVID-19 pandemic. The license owner denied FSRL’s request to restore the license and subsequently terminated the aforementioned license agreements.
FSRL, in turn, has negotiated with the current licensee to continue to have distribution rights in Indian territory to distribute products under the Lee Cooper brand through its owned and third party offline stores (excluding the licensee), including large retail stores, multi-brand stores, Shop in Shop stores, hypermarkets, national shoe chain (retail stores) and operating and selling through its e-commerce website and owned marketplace to third parties (excluding licensees).
Management has observed that all appropriate measures are being taken to restore the equivalent size and scale of the business and realign its operations within the framework of the proposed distribution rights. Management considered that this would not have a significant impact on FSRL’s business operations and therefore on the Company.
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