Union Bank of India puts 10 Future Group brands on block to recover dues

Union Bank of India has listed 10 brands from Future Brands Ltd, part of Kishore Biyani's Future Group, for auction in August to recover dues of over Rs 181 crore under SARFAESI

Union Bank of India has put on sale 10 brands of Future Brands Ltd -- including Bare, Haute N Spicy, and Studio NYX -- to recover its dues, with a reserve price of ₹230 crore.

 

The auction of secured assets of Kishore Biyani’s Future group is slated for the mid of August.

 

The dues include secured debt estimated at over ₹181 crore plus interest, costs etc., according to the notice for auction placed by public sector bank.

 

The auction was being conducted under Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) to enable banks and financial institutions recover non-performing assets (NPAs).

   

Senior bank executive said the bank has exclusive first charge of brands.

 

Lender wants to explore the value of these brands, which is an intangible asset. It became NPA in early 2022 and the lender has made provisions against exposure in line with regulatory norms. 

 

Besides Union Bank of India, the two other public sector lenders, Punjab National Bank and IFCI, had also extended credit facilities to troubled Future Group entity, according to rating agency Acuite data.

 

Future Brands, Mumbai-based entity incorporated in 2006, is a brand & Intellectual Property right company focussing on creating, developing, managing, nurturing and acquiring brands

 

In June 2024, Acuite had downgraded Future Brands Ltd long-term rating from “B+” to “D”.

 

The downgrade in rating was on account of banker feedback received mentioning the account categorisation as NPA.

 

The rating continues to be flagged as “Issuer Not-Cooperating” and is based on the best available information.

 

While flagging weakness associated with the entity, the rating agency had said the servicing was linked to timely refinancing/infusion of funds by the promoters and moderate financial risk profile.

 

Besides licensing, FBL has advised global and Indian companies such as Colgate Palmolive, Eicher Motors, Tata Motors among others on conceptual and operational brand challenges and offers them insights & knowledge-based brand solutions.

 

In 2020, FBL held the licenses to 40 brands including John Miller, BARE, DJ&C, Fresh & Pure, Lombard, Srishti, IQIP, Knighthood, KORYO, Rig etc. across fashion, electronics and FMCG formats.