Zoom News : Feb 27, 2022, 01:55 PM
Reliance Industries, the country's largest and most valuable company, has taken over the operations of some stores of Kishore Biyani's Future Retail, which are on the verge of closure. The company has offered jobs to the employees of Future Retail. Reliance Retail will now be bonded at these stores.The case started with the non-payment of rent by Future Retail Stores. After which the premises owners made pressure to vacate the stores. According to company sources, in December 2020, Reliance came to know about this and Reliance took the premises on lease in the interest of banks, creditors, employees by contacting the premises owners. The premises were sub-leased back to Future Retail to prevent the stores from closing.Reliance also provided working capital to Future Retail to run its business. According to industry sources, Reliance took this step to save Future Retail from bankruptcy. Due to the bankruptcy of Future, there was a possibility of hanging sword on the employment of thousands of employees. According to industry sources, Reliance has attributed the delay to its litigation with Amazon and its acquisition of Future.Reliance is taking control of many loss-making stores in its own hands. Rest of the stores will continue to be operated by FRL. In this way, the operating loss of FRL will also be reduced. Despite Reliance's support, Future Retail suffered a loss of thousands of crores in 2021, including lease rentals paid by Reliance and a few thousand crores of working capital. To save the company from further losses, Reliance has taken control of all such stores which were leased in its name.According to Reliance sources, all such premises will be evaluated by the company and they will be run commercially. Reliance will also give job opportunities to the employees working in the stores till now. This action of the company will prove beneficial for preserving the value of FRL and also for the bankers and creditors of FRL.