Future Group: ‘King of Retail’ to close shop, all avenues out for company

All avenues of recovery are closed for Future Retail, which is redefining shopping through the Big Bazaar brand. The Committee of Creditors (COC) has rejected the proposal made by Space Mantra. Following this, Kishor Bayani-led dev Future Retail has filed an application before the Mumbai bench of the National Company Law Tribunal (NCLT) to initiate the liquidation process. The company has reported this to the stock market.

Space Mantra’s bid was rejected.

The resolution plan submitted by construction materials company Space Mantra has not been approved by Future Retail’s COC, the company said. Space Mantra was the highest bidder. Apart from this, Pinnacle Air, Palgun Tech LLC, Lahar Solutions, Goodwill Furniture and Survabishta E-waste Management companies were also included in the Future Group’s bid. The company handling the process then suggested starting a liquidation process. The Future Group has been mired in problems since its tie-up with Reliance Retail.

Why did the deal fail?

Voting on the Space Mantra proposal was held on September 30. It had to get at least 66 percent of the votes from creditors. But, only 42 percent votes were received. With this, the future of Future Retail became dark. Space Mantra had placed a bid of Rs 550 crore. The company has a debt of about 30 thousand crore rupees.

The company operated 1500 retail outlets in 430 cities.

Future Retail gave Indian people a new shopping experience. Group companies Big Bazaar, Easy Day and Food Hall became quite popular. In its heyday, the company operated around 1500 retail outlets in 430 cities. Along with retail, the company had also gained influence in the wholesale, logistics and warehousing sectors. About 19 companies were working in Future Group. In August 2020, Reliance Retail acquired Future Group for Rs 24,713 crore. But, after a legal battle with Amazon began, the lenders blocked the deal.

Also read this

Diwali 2023: Be smart while shopping for Diwali, these tricks will save you money.

Leave a Comment