01 March 2022, Mumbai:
Reliance Retail is taking possession of Future Retail’s stores, Reliance Retail is replacing them with its own brand stores.
The company is also offering jobs to Future Retail employees and incorporating them in its payroll. All stores being taken over by Reliance are loss-making and the balance stores will continue to be run by FRL. Reliance will re-employ nearly 30,000 store staff, who would have otherwise lost their jobs.
In August 2020, the Kishore Biyani-led Future Group sold its retail and wholesale business along with logistics and warehousing verticals to Reliance Retail Ventures for Rs 24,713-crore.
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However, the deal was opposed by Amazon. The US e- commerce giant dragged Future Group to arbitration at the Singapore International Arbitration Centre (SIAC) in October 2020.
The matter is also pending before other forums such as the Supreme Court, Delhi High Court and NCLT. The arbitration compelled RRVL to extend the timeline a second time for completing its Rs 24,713 crore deal with Future group to March 31, 2022.
The company currently awaits regulatory and judicial clearances.
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