Feb 27, 07:00 pm
Reliance Industries extends support and takes charge of Future Retail Limited (FRL). Taking over the operations of its stores, it offers jobs to its employees, as the Kishore Biyani-led group is locked in a bitter legal tussle with ecommerce major Amazon.
Reliance Retail has started taking over operations of Future Retail stores such as Big Bazaar and replaced them with its brand stores, according to sources.
Future Group has been finding it difficult to finance its working capital needs. In a stock exchange filing on February 26, Future Retail said it plans to scale down its offline operations to reduce its losses in the coming months and instead focus on expanding its online and home delivery business.
“The company has been finding it difficult to finance the working capital needs. Increasing losses at store level is a grave concern and is a vicious cycle where larger operations are leading to higher losses,” it added.
The company has made a loss of Rs 4,445 crore in the last four quarters. Termination notices have been received for a significant number of stores due to huge outstanding, and it would no longer have access to such store premises.