Future Group lost nearly Rs 7,000 crore revenue in first three-four months of the pandemic to closing of stores, which led him to sell his business to Reliance Industries. There was no way the company could have survived losing such an amount. Though it had designed business to be profitable at 90 per cent of its targets, it would not be able to touch 70-80 per cent of target.
Future Retail operated 1,550 stores. Its flagship brands BigBazaar, FBB and Foodhall, Easyday, Heritage Fresh and WHSmith. Future Lifestyle Fashion operates 354 stores. Last week, US online retailer Amazon slapped a legal notice on Future Group, alleging that the retailer's Rs 24,713 crore asset sale to Reliance Industries violated an agreement with the e-commerce giant.
Amazon last year bought a 49 per cent stake in one of Future's unlisted firms, Future Coupons, with the right to buy into flagship Future Retail after a period between 3 and 10 years. Future Coupons owns a 7.3 per cent stake in Future Retail. In August this year, Future reached an agreement to sell its retail, wholesale, logistics and warehousing units to Reliance. The deal is awaiting regulatory approvals.