Future Speciality Retail (FSRL), the Company's material subsidiary, had received notices for termination of agreements for use of Brand Lee Cooper for apparel and footwear, from the license owner upon occurrence of event of default due to financial impact amid COVID-19 pandemic. The license owner denied the request of FSRL to restore the license and subsequently, terminated the aforesaid license agreements.
FSRL, in turn, has negotiated with present licensee to continue to have distribution rights for the Indian territory to distribute products under the Brand Lee Cooper through its owned and third-party (excluding licensee) offline stores including department retail stores, multi brand stores, Shop in Shop stores, hypermarkets, national footwear chain (Retail storers) and operation and sale through its owned and third-party (excluding licensee) e-commerce website and marketplace. The Management observed that all adequate steps are being taken to restore the equivalent size and scale of business and re-align its operations under the proposed distribution rights. The Management envisaged that it would not have any significant impact on the business operations of FSRL and in turn on the Company.
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