Future Tense
Business Today|May 15, 2022
Rejection of the Reliance deal by its creditors has put Future Retail in deep trouble. With Reliance becoming the main tenant of 835 FRL stores across formats, it has very little to offer to any potential buyer, once its creditors drag it to the auction block
KRISHNA GOPALAN
Future Tense

THERE IS NO DEARTH of uncertainty on the fate of the Kishore Biyani-promoted Future Group. Caught in a mountain of debt, its flagship, Future Retail as also Future Lifestyle Fashions, among other group companies, face an uncertain future as the next stop appears to be the insolvency courts.

A deal struck in August 2020 had Reliance Retail agreeing to buy out the wholesale, retail, and logistics businesses of Future Group in a ₹24,713-crore ($3.4-billion) deal. The beleaguered seller could not have asked for anything better since it allowed him to emerge from a deep hole. However, the hole only got deeper when, on April 22, as much as 69 per cent of the flagship Future Retail’s secured creditors rejected the deal.

The acquisition was already in the midst of a huge controversy as Seattle-based e-commerce giant, Amazon, objected to it. The company, in mid-2019, had acquired a 49 per cent stake in Future Coupons, an unlisted entity, giving it an indirect 4.81 per cent holding in Future Retail Limited (FRL), the entity that houses Big Bazaar, FBB, Easyday, and Heritage. Given the restrictions on FDI in Indian retail, the deal with Future Coupons was expected to lead to control over FRL as and when regulations eased up. With Reliance now out of the picture at a critical juncture, how the story will play out is intriguing for several reasons.

この記事は Business Today の May 15, 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

この記事は Business Today の May 15, 2022 版に掲載されています。

7 日間の Magzter GOLD 無料トライアルを開始して、何千もの厳選されたプレミアム ストーリー、9,000 以上の雑誌や新聞にアクセスしてください。

BUSINESS TODAYのその他の記事すべて表示
EQUITY PIONEER
Business Today India

EQUITY PIONEER

WITH NEARLY 25 years in private equity-more than half of that at the Indian arm of Advent International-Shweta Jalan stands out as one of the few women at the helm of private equity in India.

time-read
1 min  |
November 24, 2024
TECH FOR GOOD HEALTH
Business Today India

TECH FOR GOOD HEALTH

A FOUNDING MEMBER of Apollo Hospitals, Sangita Reddy has played a pivotal role in driving the organisation's growth through tech-driven solutions.

time-read
1 min  |
November 24, 2024
MARCHING AHEAD
Business Today India

MARCHING AHEAD

\"THE BIGGEST RISK is becoming complacent,\" says Radhika Gupta of Edelweiss AMC.

time-read
1 min  |
November 24, 2024
REINVENTION DRIVER
Business Today India

REINVENTION DRIVER

COLGATE-PALMOLIVE (INDIA)'S growth story has been steered by constant innovation and it is a topic that interests the company's boss, Prabha Narasimhan.

time-read
1 min  |
November 24, 2024
AN ADVOCATE FOR MENTAL HEALTH
Business Today India

AN ADVOCATE FOR MENTAL HEALTH

FOR NEERJA BIRLA, observation and realisation have played very important roles.

time-read
1 min  |
November 24, 2024
BUILDING AGILITY AND RESILIENCE
Business Today India

BUILDING AGILITY AND RESILIENCE

AS CHAIRPERSON OF Piramal Pharma Ltd (PPL), Nandini Piramal says she has worked towards cultivating a culture of innovation and diversity.

time-read
1 min  |
November 24, 2024
FOCUSSING ON THE BASICS
Business Today India

FOCUSSING ON THE BASICS

SHE MAY BE in the business of keeping customers cool during the summer months, but her job is a year-round affair.

time-read
1 min  |
November 24, 2024
FINGER ON THE PULSE OF INDIA
Business Today India

FINGER ON THE PULSE OF INDIA

LAST YEAR WAS a blockbuster one for Netflix India; the OTT platform also won numerous accolades (including an Oscar for The Elephant Whisperers).

time-read
1 min  |
November 24, 2024
Shifting Gears
Business Today India

Shifting Gears

CHANGE IS INEVITABLE Lakshmi Venu holds this belief as she leads one of the country's largest auto components maker Sundaram Clayton and the billion-dollar tractor manufacturer TAFE.

time-read
1 min  |
November 24, 2024
SHINING SUN
Business Today India

SHINING SUN

FOR ANYONE LIVING in south India, the Sun network is a familiar name.

time-read
1 min  |
November 24, 2024