Future Lifestyle Fashions chairperson Shailesh Haribhakti resigns

The chairperson of Future Lifestyle Fashions Ltd, Shailesh Haribhakti, has resigned observing that 'board's recommendation to find solutions have not been met with implementation impetus'

The chairperson and independent director of Future Lifestyle Fashions Ltd, Shailesh Haribhakti, has resigned observing that "volatile, complex and unpredictable legal and financial circumstances have taken unexpected turns, and the board's recommendation to find solutions have not been met with implementation impetus, according to a regulatory filing by the company.

Haribhakti had chaired meetings of shareholders and creditors of Future Group entities that were called to vote on the Rs 24,713 crore deal with Reliance Retail, after he was given the charge by the National Company Law Tribunal (NCLT).

In a regulatory filing, Future Lifestyle Fashions Ltd (FLFL) said, "Shailesh Haribhakti has resigned from the position of the Chairperson and Independent Director of the company with effect from April 22 , 2022 vide his resignation letter dated 22 April 2022 submitted to the Company."

In the resignation letter, which has been shared by FLFL to the bourses, Haribhakti said the "volatile, complex and unpredictable legal and financial circumstances" of the company have taken unexpected turns.

"Many alternative recommendations made by the board and all efforts of the Board to find a solution have not met with the implementation impetus.

"Consequently, as Chairperson of the Board, I feel constrained to act further and submit my resignation as a member of the Board with immediate effect to enable the Promoters and Investors to find out suitable alternatives, who would be able to find a solution for the Company," he said.

Haribhakti claimed he ensured that all responsibilities entrusted to him including "very recent one of chairing NCLT convened meetings of the Company and other group companies" are discharged diligently.

"Further, I would be happy to provide any further advise and support to the Company and management, as they may need," he said.

Like other listed companies of the Future group, the secured creditors of FLFL earlier this week voted against the Rs 24,713 crore deal with the retail arm of the billionaire Mukesh Ambani-led Reliance Industries.

FLFL's 82.75 per cent secured creditors, which mainly include banks and financial institutions, voted against the deal while 17.25 per cent supported it. The company in a regulatory filing on Friday said 81.91 per cent of shareholders supported the deal and 18.09 per cent opposed it.

FLFL was among the 19 companies that were to be transferred to Reliance under the deal announced in August 2020. These 19 companies were proposed to be consolidated into one entity -- Future Enterprises Ltd (FEL)-- and then transferred to RRVL under the proposed deal.

On Saturday, almost 21 months after signing an agreement with Future Group to acquire its retail, wholesale, logistics and warehousing assets, Reliance Industries Ltd said the transaction cannot go ahead as secured creditors of the latter have voted against it.