Future Group stocks: Stocks of Future Group companies, which are facing cash crunch, saw a strong rally on Monday. The reason for this is believed to be Reliance taking over the operations of 200 stores of the Future Group.
Reliance Retail has taken over operations of at least 200 stores of Future Retail after the Kishor Biyani-led conglomerate failed to make lease payments to its landlords, ANI quoted sources as saying. Jobs are offered to the employees.
Future Group shares up 19 per cent
Following the development, Future Supply Chain Solutions gained 17 per cent to Rs 71.50, Future Retail gained 13 per cent to Rs 51.75 and Future Market Networks gained 10 per cent to Rs 9.70.
Reliance took over the command of Future, took over the operation of stores
On the other hand, Future Enterprises and Future Lifestyle Fashions rose 9 per cent to Rs 8.99 and Rs 56.35, respectively. Future Consumer is up 7 per cent at Rs 7.36. Future Enterprises DVR gained 19 per cent to Rs 12.85.
Big Bazaar started two decades ago
Even though Future has over 1,700 outlets, all these 200 stores that Reliance will rebrand will be from the group’s flagship supermarket chain Big Bazaar. These were started by Kishore Biyani almost two decades ago.
Billionaire Mukesh Ambani-owned Reliance Industries had transferred leases of some stores in its name and leased them to Future, but is now taking them into its own hands. Reliance has offered jobs to the store’s staff on existing terms.
The deal was done between Reliance and Future Group for 24,713 crores
“The company expects that the proposed scheme of arrangement with Reliance will be implemented, which will benefit all the stakeholders,” the company said.
In August, 2020, Future Retail Limited, Future Group Companies and Reliance Retail Ventures Limited (RRVL) approved a Scheme of Arrangement for transfer of Retail and Logistics business of Fuzer Group to RRVL on a one-time basis for a total of Rs 24,713 crore .
6,000 crore owed to creditors and landlords on Future
At the time of the arrangement, Future Group was in serious financial trouble. It has defaulted on dues to creditors and landlords of leased premises. The dues of creditors and landlords have crossed Rs 6,000 crore.
Reliance has so far spent Rs 1,500 crore to clear the dues.
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