Reliance vs Amazon vs Future: Reliance has taken over some of the stores of Future Retail and has offered jobs to its employees.
Reliance vs Amazon vs Future: Reliance Retail has started taking over the stores of Future Retail such as Big Bazaar and started changing its brand name. Apart from this, employees of Future Retail have been started on the payroll of Reliance Retail. According to news agency PTI, Reliance Industries has taken over some stores of Future Retail and has offered jobs to its employees.
Reliance has done this takeover at a time when the final decision on the legal battles regarding Future Retail is yet to come. Kishore Biyani’s Future Group is fighting a legal battle against a deal made with e-commerce giant Amazon to hand over Future Retail to Reliance. Amazon declined to comment on the matter.
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Reliance is taking its hands on loss making companies
After the deal between Reliance and Future in August 2020, the landlords approached Reliance as Future Retail was unable to pay the rent. On this, Reliance entered into a lease agreement with them and where possible, started its sub-lease so that Future Retail could continue its business. The stores that Reliance is taking over are making losses while the rest of the stores will continue to operate under Future Retail. Thus, the operating loss of Future Retail will be less. However, it is not yet decided how many stores Reliance is taking over. According to industry sources, Reliance will identify such stores from which profit can be made. Apart from this, she will re-hire about 30 thousand workers of the store so that their jobs can be saved.
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The ongoing legal battle over the Reliance-Future deal
About two years ago in August 2020, Future Group made a deal with Reliance Retail for Rs 24712 crore for its Future Retail. Future Group had entered into a deal to hand over its retail and wholesale businesses and logistics and warehouse verticals to Reliance. Under the deal, 19 companies of Future Group’s retail, wholesale, logistics and warehousing will be transferred to Reliance as a single company. However, Amazon went to the International Arbitration Center in Singapore against this deal. The decision on this matter is yet to come from the Supreme Court of India, Delhi High Court and NCLT as well.
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