Future Group has received termination notices for 947 stores, which it had sub-leased from Reliance entities.
The company on March 7 and 8 received termination notices for 342 Big Bazaar and Fashion @ Big Bazaar (fbb) outlets, 493 small format stores, including easyday and Heritage stores, Future Retail said in a stock exchange filing. It also said these stores have been historically contributing about 55 per cent to 65 per cent of retail revenue operations of the company.
Future Lifestyle has also received termination notice for 78 Brand Factory stores and 34 central stores, which had been contributing 55-65 per cent of the company’s retail revenue, it said in its stock exchange filing.
Future Group now has about 550 stores of around 1,500, a company official said.
In both the stock exchange filings, Future Group said it was in talks with Reliance Group for maintaining status quo and safeguarding the interest of various stakeholders.
A source said while Reliance Group has taken over these 947 stores, it is still in the first phase of rebranding about 250 stores. The Mukesh Ambani-led company is also in the process of bringing 30,000 Future Group employees under its payroll and well as that of Reliance SMSL.
A source had earlier told Business Standard that Future Retail and Future Lifestyle had not paid lease rentals to Reliance Industries and added that for Future Retail to continue its business, it extended working capital support due to which Future Retail has been able to pay statutory dues, interest and one-time settlement amount to banks and continue its business operations. The source had also said Future Retail owes Reliance Industries towards this working capital support. Business Standard