Big Bazaar Becomes Reliance Stores! 200 Big Bazaar Outlets Will Be Rebranded As Reliance Store From This Date
Almost all of the Future Retail Limited’s Big Bazaar stores have remained closed throughout the weekend and the company has been operating through their online store. All Reliance Retail stores are now set to reopen these stores next week. Reliance is going to takeover the flagship supermarkets of Future. The company has missed lease payments.
Future is currently not functioning online
Customers will not be able to order through Future’s e-commerce mobile app and website.“We regret to inform you that currently stores are non-operational for 2 days,” Big Bazaar responded to a Twitter user who complained about the closure.
Reliance is rebranding Future stores
Reliance has started the process of rebranding the Future stores because the company did not make the required payments to Reliance, according to sources. The company Future has over 1,700 outlets. Reliance is going to rebrand 200 of Future’s Big Bazaar stores. All the other stores will continue to be run by Future Retail.
Reliance had transferred leases of some Future stores to its name and is going to sublet them to Biyani’s firm. But, since Future was not able to pay the lease rent, Reliance is taking over. Reliance has offered store staff jobs on the existing terms. Earlier, Future had told stock exchanges that the company has been “scaling down its operations”.
The recent move is notable as Reliance has made many failed efforts since 2020 to close a $3.4 billion deal to acquire the retail assets of Future. Amazon, which is Future’s partner, stopped the deal from going through by using its 49% stake in Future Coupons Pvt Ltd (FCPL), which is a shareholder in Future Retail.
Amazon has maintained its claim that Future violated the terms of a 2019 deal in which it had invested $200 million in Future Group. The matter is being disputed before the Supreme Court and Singapore International Arbitration Centre (SIAC).
Reliance Retail Ventures had previously extended the timeline for completing the Rs 24,713 crore deal with Future group to 31th March 2022. There was no clearance on the regulatory and judicial side.