Flipkart begins talks to acquire a stake in Future Lifestyle Fashions
Future Lifestyle Fashions’ shares have risen by over five percent following breaking news of Flipkart starting talks to acquire an eight to ten percent stake in the business.
Kishore Biyani, the CEO of Future Lifestyle Fashions, entered into talks with e-commerce giant Flipkart last week to discuss the possibility of selling them a stake in his company. After news of this development broke, Future Lifestyle Fashions’ shares rose by 5.16 percent on Tuesday October 17. However, talks are still in a preliminary stage and will only be resumed after the Diwali festival.
It is anticipated that Myntra, the fashion business that Flipkart acquired in 2014, will be the vehicle for the partnership between Flipkart and Future Lifestyle Fashions if the deal goes through. Flipkart’s decision to enter into talks with Future Lifestyle Fashions Ltd, the fashion arm of Future Group, follows their acquisition of a five percent stake in Shoppers Stop last month which was their first entrance into offline fashion retail and part of their strategy to reach more rural areas.
Future Lifestyle Fashions has approximately 400 retail outlets and is present in 90 cities across India. The business also owns 41 national and international brands including Scullers, Lee Cooper, and Indigo Nation. Future Lifestyle Fashions is aiming to halve its debt in the coming months and selling of a sizeable stake to Flipkart would help them to work towards that.
Copyright © 2021 FashionNetwork.com All rights reserved.