A bunch of shop owners have approached Reliance Industries (RIL) seeking clarity on their premises rented out to Future Retail, which are not included in the 947-odd shops the Mukesh Ambani-led company is taking over.
In February, Reliance Retail, a subsidiary of Reliance Retail Ventures (RRVL), began taking control of retail stores of the debt-laden Future Group. It plans to rebrand them as Reliance Digital, Reliance Smart and Reliance Fresh (groceries), and Reliance Trends (clothes and accessories).
Future Retail and Future Lifestyle together have 1,700 stores, including the popular Big Bazaar stores, across the country.
“Another 100-150 landlords have approached RIL as they wanted clarity on the takeover, with their leases ended or terminated. RIL had promised to take over 950 stores and about 30,000 employees, but the fate of the remaining 750 is still in a limbo,” a source close to the development said.
They were also offering their premises on rent, as they are hopeful of RIL expanding its retail operations.
RIL is yet to take a call on the remaining stores operated by Future Group. Reliance Retail operates more than 12,000 stores in the country. RRVL is a wholly-owned subsidiary of RIL.
Earlier in a regulatory filing, Future Retail, had said it was going through an acute financial crisis. The company had defaulted on its loan servicing and its account was classified as a non-performing asset by banks.
In August 2020, RIL sealed a deal to acquire the retail business of Future Group for Rs 24,713 crore, which was opposed by American retail major Amazon, citing a 2019 non-compete agreement between Amazon and Future Group. The case is now being heard before the Supreme Court.
On March 3 this year, Future Group and Amazon agreed to initiate talks for an out-of-court settlement.
“Talks are on, and all options of a settlement are being explored. The ball is in Amazon’s court and if it suggests something which can be sorted out, then we will reach a settlement soon,” senior lawyer Harish Salve, who appears for Future Group, said.
