As per the advisories issued by the local authorities and State Governments, Future Lifestyle Fashions Ltd. temporarily shuts down most of its fashion retail stores.
In the wake of the novel Coronavirus (COVID-19) outbreak, retail stores of exclusive brands such as Central, Brand Factory, amongst other EBOs and MBOs owned by Future Group are temporarily closed until 31 March.
It has also halted its factory operations in Karnataka, Tamil Nadu and Odisha, with concern for the health of its employees.
According to the data reported by ET Retail, The scrip plunged 47.28 per cent to Rs. 187.05 last week. This included a 20 per cent slide on Thursday and a 10 per cent drop on Friday.
While the stock exchanges have looked for explanation from the company with respect to a critical value move, ICRA downgraded its group company, Future Corporation Resources, to junk rating, citing high levels of debt and pledged shares.
People practicing ‘social distancing’ to fight against the deadly novel COVID-19 outbreak has severely impacted the business of the company.
Temporary shutdown of stores, fall in revenue, drop in footfalls and discretionary spending by the customers are also the major factors impacting the India-based fashion retailer.