Future Retail Limited, India’s second-largest retailer, suspended most of its on-line and offline operations as shops remained shut on Sunday, after rival Reliance bid to take over its flagship supermarkets for missed lease funds.
Reliance Industries Limited will rebrand the Future shops after the corporate did not make funds for them to Reliance, sources informed Reuters on Saturday, closing most retailers of the favored Big Bazaar chain.
Though Future has greater than 1,700 retailers, all of the 200 shops that Reliance will rebrand as its personal will likely be Big Bazaars, which was began round 20 years in the past by Kishore Biyani, dubbed as India’s retail king for reworking the sector.
Future and Reliance didn’t reply to requests for remark. Future informed inventory exchanges on Saturday the corporate was “scaling down its operations.”
Future’s shops throughout India remained shut throughout India as Reliance did stock-taking forward of a rebranding, folks aware of the plans stated.
“We regret to inform you that currently stores are non-operational for 2 days,” Big Bazaar informed a Twitter person who complained a couple of closure.
Future’s e-commerce cell app and web site have been additionally not obtainable for on-line ordering.
Reliance’s transfer assumes significance because it follows failed efforts since 2020 to shut a $3.4 billion deal to accumulate the retail belongings of Future, whose accomplice Amazon.com Inc has blocked the transaction by citing violation of contracts. Future denies any wrongdoing.
Reliance had transferred leases of some shops of debt-laden Future to its identify and sublet them to Future, however is now taking on as Future didn’t make funds. Reliance has provided retailer employees jobs on present phrases.
“All employees, consumers, and everyone in India – we are all attached to the Big Bazaar brand,” a Big Bazaar worker on Sunday. “So you feel sad this is happening.”
In blocking the Future-Reliance deal, Amazon has lengthy argued that Future violated the phrases of a 2019 deal wherein the US large invested $200 million within the Indian firm. Amazon’s place has been backed thus far by a Singapore arbitrator and Indian courts.