In a fresh development in the ongoing tussle to gain supremacy in the retail market, billionaire Mukesh Ambani’s Reliance Retail has sent notices to Future Retail terminating sub-leases of additional 950 stores it had taken over previously.
Future Group’s in its exchange filing, said that the company has received termination notices from Reliance Group in relation to the sub-leased properties. they have been served notices to terminate the lease of 835 Future Retail stores and 112 Lifestyle stores.
Last month, Reliance Retail had taken over store spaces forwhich the Future Group couldn’t pay lease rent. These were then sub-let to the Future Group for operation.
“So far, notices have been received in respect of 342 large format stores [such as Big Bazaar, @ Big Bazaar (fbb)] and 493 small-format stores (such as Easy Day and Heritage stores) of the company,” FRL said in the exchange filing.
Separately, Future Lifestyle Fashions said it has received termination notices for 34 ‘Central’ stores and 78 ‘Brand Factorys’ stores.
“These stores have been historically contributing approx.55% to 65% of retail revenue operations of the Company. As of now, these stores are not operational for stock and inventory reconciliation. In both these filings, Future Group maintained that it is in a discussion with Reliance Group to “maintain status quo and for safeguarding the interest of various stakeholders”.
Reliance Retail, the retail arm of the oil-to-telecom conglomerate, had in August 2020 agreed to take over the retail and logistics business of the Future Group for Rs 24,713 crore but the deal couldn’t be closed, as Future’s warring partner Amazon went to courts citing violation of some contracts. Future denies any wrongdoing. Earlier this month, a Supreme Court bench led by Chief justice NV Ramana had given Amazon and Future Group 12 days time to reach a possible solution to the ongoing tussle between the retail groups.