Reliance retail ltd, Retail company

Reliance Retail Ltd has taken over the operations of at least 200 stores of Future Retail and has offered jobs to its employees after the Kishore Biyani-led group failed to make lease payments to landlords, sources said on Sunday.Reliance Retail, the retail arm of the oil-to-telecom conglomerate, had in August 2020 agreed to take over the retail and logistics business of the Future Group for Rs 24,713 crore but the deal couldn't be closed as Future's warring partner Amazon went to courts citing violation of some contracts, while Future denied any wrongdoing.Sources said several landlords had approached Reliance as Future Retail Ltd (FRL) was unable to pay rent.Future has more than 1,700 outlets, including the popular Big Bazaar stores. FRL was unable to pay lease rent for more than 200 outlets. Facing closure, Reliance transferred the leases of some stores to its step-down subsidiary Reliance Retail and sublet them to Future to operate the stores, the sources said.It has since started rebranding the stores and offered to take all employees employed there on its payroll, they added.Sources toldthat not only Reliance Retail have sublet those stores to FRL, they have also provided working capital to FRL, the amount which could not be known.In addition, a majority of inventory at these stores was being supplied by Reliance Jiomart as cash-strapped FRL could not clear dues to existing suppliers. Reliance will likely replace Big Bazaar signage and branding from these stores with its own brand.Without confirming or denying the takeover of its stores, Future Retail Ltd in a stock exchange filing said, "The shareholders are aware that FRL is going through an acute financial crisis. The company has defaulted on its loan servicing and informed earlier, the account of the company has been classified as NPA by the banks."FRL said it is finding it difficult to finance the working capital needs and "termination notices have been received for a significant number of stores due to huge outstanding, and we would no longer have access to such store premises.""The ongoing litigation initiated by Amazon in October 2020, and which is continuing for the last one and a half years, has created serious impediments in the implementation of the Scheme (Reliance takeover), resulting in a severe impact on the working of the company," it said, adding the firm is scaling down its operations to reduce losses.FRL is proposing to expand its online and home delivery business to increase its reach to the customers."The company has been finding it difficult to finance the working capital needs. Increasing losses at store level is a grave concern and is a vicious cycle where larger operations are leading to higher losses," the filing said. "The company has made a loss of Rs 4,445 crore in the last four quarters."FRL said it is hopeful that the Reliance deal will be implemented as it will be beneficial for all the stakeholders. Amazon has argued that Future violated the terms of a 2019 deal, the companies signed when the US e-commerce giant invested USD 200 million in a Future Group unit. Amazon's position has been backed by a Singapore arbitrator.( With inputs from ANI )Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

Home

City

Latest News

Cricket

LT Premium

National

International

Maharashtra

Opinions

Chhatrapati Sambhajinagar

Nagpur

Entertainment

Photos

Business

Technology

Sports

Lifestyle

Social Viral

Lokmat Games

Health

Trump Tarrifs

Tahawwur Rana

IPL 2025

CM Devendra Fadnavis

Mumbai Local

Weather Update

Reliance Retail LtdFOLLOW

Reliance retail ltd, Latest News

International :Reliance Retail begins appointing super-stockists to distribute its private label products in multiple FMCG categories

New Delhi, Sep 4 Reliance Retail (RR) has begun appointing super-stockists to distribute its private label products in ... ...

Business :Reliance Retail first quarter revenue rises by 52 per cent

Reliance Retail, a subsidiary of Reliance Industries Limited (RIL), on Friday reported consolidated gross revenue of Rs 58,554 crore for the quarter ended June 30, 2022, registering a year-on-year growth of 51.9 per cent. ...

Business :Reliance Retail boosts its 'Handmade in India' programme

In a strong boost to its 'Handmade in India' programme, Reliance Retail on Thursday announced several new initiatives aimed at showcasing authentic handcrafted products and promoting the rich Indian art forms globally. ...

Business :Reliance Retail, Fynd ranked among most innovative firms in Asia-Pacific

Reliance Retail, India's largest retailer, and Reliance-backed Shopsense Retail Technologies firm Fynd, have been named among the top 10 most innovative companies in Asia-Pacific by leading business media brand Fast Company. ...

Business :Reliance takes control of around 200 Future Retail stores

Reliance Retail Ltd has taken over the operations of at least 200 stores of Future Retail and has offered jobs to its employees after the Kishore Biyani-led group failed to make lease payments to landlords, sources said on Sunday. ...