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

Public sector lender Union Bank of India has put on the block 10 brands of Future Brands Ltd, part of Kishore Biyani's Future Group, for recovery of dues. Brands being auctioned include BARE, HAUTE N SPICY, and STUDIO NYX, with the reserve price set at Rs 230 crore. The auction of secured assets is slated for the middle of August. The dues cover secured debt estimated at over Rs 181 crore, plus interest, costs, and other charges, according to the auction notice. The auction is being conducted under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI), which enables banks and financial institutions to recover non-performing assets (NPAs). A senior bank executive said the lender has an exclusive first charge on the brands. The bank wants to explore the value of these brands, which are intangible assets. The account became an NPA in early 2022, and provisions have been made in line with regulatory norms. Future Brands, a Mumbai-based entity incorporated in 2006, is a brand and intellectual property rights company focused on creating, developing, managing, nurturing, and acquiring brands. In June 2024, Acuite downgraded Future Brands Ltd's long-term rating from 'B+' to 'D'. The downgrade was based on banker feedback indicating the account's categorisation as an NPA. The rating continues to be flagged as 'Issuer Not-Cooperating' and is based on the best available information. Highlighting weaknesses associated with the entity, the rating agency noted that servicing obligations were dependent on timely refinancing or infusion of funds by the promoters, and pointed to a moderate financial risk profile. Besides licensing, FBL has advised global and Indian companies such as Colgate-Palmolive, Eicher Motors, and Tata Motors on conceptual and operational brand challenges, offering insights and knowledge-based brand solutions. In 2020, FBL held the licences to 40 brands, including John Miller, BARE, DJ&C, Fresh & Pure, Lombard, Srishti, IQIP, Knighthood, KORYO, and Rig, across fashion, electronics, and FMCG formats.