Shares in Future Group companies jumped nearly 10% on Tuesday after an Indian court overturned an order that had stalled Future Group’s $3.4 billion deal to sell its retail assets to conglomerate Reliance Industries Ltd.
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.
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.
Koovs continues to be lossmaking but its losses are reducing as margins improve and its recent funding round has left it confident of future growth in a market where only 1% of sales currently happen online.