Future Group stocks surged as shares of Future Supply Chain Solutions, Future Retail, Future Lifestyle Fashions, Future Consumer and Future Enterprises surged in the range of 7-16% in Monday's early deals after reports suggested that Reliance Industries (RIL) would take on at least 200 Future Retail stores after the debt-laden group failed to make lease payments for them to Reliance.
Future Retail suspended most of its online and offline operations as stores remained shut on Sunday, after rival Reliance bid to take over its flagship supermarkets for missed lease payments. India's top valued firm RIL will rebrand the Future stores, sources told Reuters, closing most outlets of the popular Big Bazaar chain.
Future Retail in an exchange filing said that it 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 is scaling down its operations which will help in reducing losses in the coming months and is proposing to expand its online and home delivery business, to increase its reach to the customers.
Though Future has more than 1,700 outlets, all the 200 stores that Reliance will rebrand as its own will be the group's flagship supermarket chain Big Bazaar, which was started about two decades ago by Kishore Biyani, helping him earn the moniker of father of modern retail in India.
Reliance's move follows failed efforts since 2020 to close a $3.4 billion deal to buy the retail assets of Future, whose partner Amazon.com Inc has blocked the transaction citing violation of contracts. Future denies any wrongdoing. Mukesh Ambani-led firm had transferred leases of some stores of debt-laden Future to its name and sublet them to Future, but is now taking over as Future did not make payments.
