Reliance Retail has taken over the operations of at least 200 stores of Future Retail and has offered jobs to its employees after the Kishore Biyani-led group failed to make lease payments to landlords, said ANI citing sources.
Following the development, shares of Future Supply Chain Solutions zoomed as much as 17 per cent to Rs 71.50, Future Retail rallied 13 per cent to Rs 51.75 and Future Market Networks gained 10 per cent to Rs 9.70.
Future Enterprises and Future Lifestyle Fashions zoomed 9 per cent each to Rs 8.99 and Rs 56.35, respectively. Future Consumer jumped 7 per cent to Rs 7.36. Future Enterprises DVR surged 19 per cent to Rs 12.85.
Though Future has more than 1,700 outlets, all the 200 stores that Reliance will rebrand as its own will be the group's flagship supermarket chain Big Bazaar, which was started about two decades ago by Kishore Biyani.
Billionaire Mukesh Ambani-owned Reliance Industries had transferred leases of some stores to its name and sublet them to Future but is now taking over. Reliance has offered store staff jobs on existing terms.
Reliance's move follows failed efforts since 2020 to close a $3.4 billion deal to buy the retail assets of Future, whose partner Amazon.com Inc has blocked the transaction citing violation of contracts. Future denies any wrongdoing.
On the other hand, Amazon is planning to approach the Delhi High Court and the National Company Law Appellate Tribunal (NCLAT), questioning the change in the lease structure of the stores of Future Retail Ltd (FRL) and the role of the company's independent directors in it, two industry executives said.
Future Group stocks zoom up to 19% as RIL takes control of 200 Future Retail stores - Economic Times
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