Future Group operates retail companies across India. Future Group’s retail stores have been closed since last Saturday. The group’s online section is also down. It has been reported that Reliance will take control of a significant number of stores and change its name to Reliance Retail.
Although no official information has been released on this, Future Retail has only informed the stock exchanges that we are reducing our operations. And the general information on Twitter is that our stores have not been operational for two days.
In August 2020, Reliance announced its acquisition of Future Group for Rs 2,4713 crore. But due to the agreement between Future Group and Amazon Group, the lawsuit was filed internationally by Amazon. So this deal could not. So the Future Group was not able to pay the debts properly.
Future Group has to repay several loans. Rent for shops is also important. The landlords gave the Future Group a crisis because of the non-payment of rent. Failure to pay the rent will result in the company going bankrupt. Reliance came to avoid it. Reliance has taken the license for the shops and given it to Future Group. Reliance has also paid for the working capital. Reliance is currently taking over Future Group’s stores as Future Group is unable to pay this rent to Reliance.
Reliance’s deal with landlords is expected to come as a shock to Amazon. Prosecutors say Amazon did not expect such action while the lawsuits were ongoing.
Although Future has more than a thousand stores, it is expected that Reliance will acquire 200 stores for now. It is learned that those who worked in those stores will become Reliance Group employees and work is underway to enumerate the items in the stores. It looks like a few hundred stores will be operational in the name of Reliance in the next few days.
The issue between Future, Reliance and Amazon has moved to the next level.
– Vasu Karthi