
Future Group: Insolvency looms
Future has a shade over 550 stores left after RIL took over 830 stores for not paying rentals since early 2020. Of these, over 70% are defunct.
Future has a shade over 550 stores left after RIL took over 830 stores for not paying rentals since early 2020. Of these, over 70% are defunct.
Future group companies hit their lower-price circuits for the second consecutive day as they failed to secure the ₹24,713 crore deal with RIL.
Shares of Future Lifestyle and Future Supply Chain nosedived 20%, while Future Retail and Future Enterprises dropped up to 10% after RIL called off the ₹24,713 crore deal.
From a peak of 1,400 stores, Future group is now left with around 550 stores. Of these, 70% are shut because of lack of stocks.
Abu Jani and Sandeep Khosla, the co-owners of the lebel, will continue to lead the design and creative direction of the brand.
Debt recovery of ₹30,000 crore from Future group companies will be tough for the banks if the retailer loses stores to Reliance without a deal.
India's largest retailer paid ₹950 crore to buy an 89% equity stake in Clovia through a combination of secondary stake purchase and primary investment.
Shares of Future Retail dropped 5.86% to hit a low of ₹45.8 on the BSE after it received termination notices for 947 stores, which it had sub-leased from the Reliance group.
The Supreme Court has adjourned the matter for 10 days, and will pass orders if Amazon and Future fail to reach an out-of-court settlement.
It acquired stakes in over 25 companies in the last three years