The board of Koovs has decided to place the business into administration after failing to secure additional funding to continue operations. Its founder is expected to acquire the brand and assets out of administration.
Koovs, a UK-based Indian e-tailer, is working with Future Lifestyle Fashions Limited, India’s largest retail group, to review their options and consider new fundraising routes after their deal hit the rocks last week.
Koovs has signed a contract to develop a new menswear brand for Brand Factory, an Indian discount retailer with 93 stores. The announcement further expands Koovs’ partnership with Future Lifestyle Fashions Limited.
Future Lifestyle Fashions Ltd (FLFL) saw its net profit plummet 8 percent to Rs 25 crore ($3.7 million) for the first quarter ended June 30, 2019, as against Rs 27 crore it had posted in the same period last fiscal.
London-listed Koovs, the fast fashion e-tailer that targets the Indian youth market, had good news Tuesday as it updated on its trading performance in the year to March 31 and also shared details on extra funding.