For the past several months, a legal battle is going on between Reliance and Amazon to take over the retail business of debt-ridden Kishore Biyani’s company Future Group. Reliance suddenly took control of several Future Group stores on the night of 25 February. The company said that the lease for these stores was not paid. This act of Reliance had put not only Future but also Amazon in danger.
what the company said
Reliance has clarified its stand in this matter for the first time in a letter dated March 8. The company has said in this letter that it has taken several important steps to protect Future from loss. These include financial support of 48 billion rupees or $ 634 million. Of this, Rs 11 billion was given as lease payment and Rs 37 billion as working capital. Reliance had taken over the lease of 900 of Future’s 1500 stores and allowed Future to operate it.
Reliance has said in this letter that Future failed to pay the dues and the losses of its retail business kept increasing. Due to this, Reliance was forced to take over these stores by exercising its legal authority. Reuters has seen this letter. Reliance and Future did not immediately comment on this.
what the future has to say
Future Group, which has reached the verge of bankruptcy, had called this action of Reliance a unilateral step. Reliance made a deal worth $ 3.4 billion in 2020 to buy Future’s retail business. But Amazon challenged it. When Reliance took control of Future’s stores, Future wrote a letter to it on March 2. It was asked whether Reliance would continue on the terms of the deal. In response, Reliance responded to Future. The company said that whenever the deal comes into force, it will be as per the terms and conditions.
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