Reliance Retail: Mounting dues compelled to take over debt-laden Future Retail’s stores
05 April 2022, Mumbai:
Mounting dues of $634 million compelled it to take over debt-laden Future Retail’s stores, says Reliance Retail, India’s top retailer.
Through this takeover, the company aims to dominate the $900-billion retail sector that set off a bitter dispute in which India's Supreme Court will decide whether Reliance or Amazon Inc gets to scoop up Future's assets.
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Over months, Reliance has taken over the leases of more than 900 of Future's 1,500 stores, while still allowing the company to run them.
As Future proved unable to pay outstanding dues and losses in its retail operations swelled, Reliance decided to exercise its legal right to take over the stores, the letter added.
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Earlier, the company had proposed a $3.4-billion deal to buy Future's retail, wholesale and logistics operations, as well as some other businesses.
But following Reliance's abrupt takeover of its stores, Future sought several assurances in a March 2 letter, asking if Reliance would stick to the deal without changing its value or terms.
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