Reliance Shuts Down 950 Big Bazaar Outlets, Lifestyle Stores, Easy Day & Heritage Stores | But Why?
- Reliance Retail has given notices to Future Group to terminate the lease of 83 more Future Retail stores and 112 Future Lifestyle stores.
- New notices were sent weeks after Reliance took over 200 Future Group stores which it is going to rebrand and open as Reliance stores.
Reliance Retail has given notices to Future Group to terminate the lease of 83 more Future Retail stores and 112 Future Lifestyle stores in the midst of the continuing dispute between the three retail companies namely, Amazon, Future and Reliance. The new notices have been sent weeks after Reliance took over 200 Future Group stores which the company is going to rebrand and open as Reliance stores.
More Future stores receive lease termination letters
In an exchange filing Future Group’s Future Retail Ltd, revealed that the company has received termination notices from Reliance Group about the sub-leased properties. Future Retail said that it has received notices about 342 large format stores. These stores include Big Bazaar, Fashion @ Big Bazaar, and 493 small formatted stores such as Easy Day and Heritage stores of the company.
“These stores have been historically contributing approx. 55% to 65% of retail revenue operations of the Company. As of now these stores are not operational for stock and inventory reconciliation,” the company said in the filing.
Future Group’s other company Future Lifestyle Fashions also revealed that it has received termination notices from Reliance for a total of 112 stores including 34 Central stores and 78 Brand Factory stores of the Company.
Future Group has continually said that it is communicating with Reliance Group to “maintain status quo and for safeguarding the interest of various stakeholders”.
The dispute between Amazon and Future
Previously, a Supreme Court bench with Chief justice NV Ramana in the lead gave Amazon and Future Group time of 12 days to find a possible solution to their continued dispute. Amazon has obstructed Future’s $3.4 billion asset sale to Reliance Industries since the year 2020, because according to Amazon, Future is in violation of both the company’s 2019 deal in which Amazon had invested $200 million in Future Group. Future has denied any wrongdoing.