Future Retail Ltd, led by Kishore Biyani, is embroiled in a bitter legal battle with e-commerce company Amazon over retail. Thus, the company failed to pay the rent for the stores. As such, the company owed more than Rs 6,000 crore to creditors and landowners alone.
Meanwhile, Reliance Industries has started acquiring Future Retail outlets such as Big Bazaar.
Reliance acquired Future Group’s retail and logistics business in August 2020 for Rs. Agreed to take Rs 24,713 crore. However, even before the deal was finalized, Amazon, a partner in Future, went to court citing breaches of certain agreements. As a result, Future was unable to finalize its agreement with Reliance.
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Meanwhile, the loss-making Future Retail Ltd. was unable to pay rent for the stores. As a result, many building owners have reportedly approached Reliance.
Future Retail Limited owns more than 1,700 outlets, including the popular Big Bazaar. Of these, rent for a few retail outlets remains unpaid. As a result, Reliance closed down several retail outlets and began operating under the company, paying rent for the stores.
Following this, it has now started renaming those stores and has offered to pay all the employees who work there. In addition, most of the inventory for these stores is supplied by Reliance Jio Mart. This is because Future Retail Ltd. is suffering from cash shortages and the company is unable to pay the outstanding amount to the suppliers. Following this, Reliance is to change the name of Future Retail stores, including Big Bazaar, to its own name.
Amazon has argued that Future violated the terms of the 2019 agreement signed by the companies when the US e-commerce company invested $ 200 million in the Future Group unit. Amazon’s position is backed by a Singapore arbitrator.
From the Supreme Court to the Delhi High Court, a lawsuit is pending against Reliance’s future contract with Amazon, Future Retail Limited. Furthermore, Amazon has made every effort to thwart Reliance Retail’s plan to recover the troubled Future Group, from the company’s legal tribunal to the appellate tribunal and the Singapore arbitral tribunal.
So far, Reliance has spent over Rs 1,500 crore to repay Future Retail Limited.
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