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Tuesday, January 31, 2023

Reliance shutters 950 Big Bazaar outlets, Lifestyle stores, Easy Day stores, and Heritage stores

Future Group has been notified that Reliance Retail will terminate the leases of 83 more Future Retail stores and 112 Future Lifestyle stores. 

New notices were sent weeks after Reliance took over 200 Future Group stores, which will be rebranded and reopened as Reliance stores.

Despite the continuing dispute between Amazon, Future and Reliance, Reliance Retail has given notice to Future Group to terminate leases on 83 more Future Retail stores and 112 Future Lifestyle stores. New notices have been sent weeks after Reliance took over 200 Future Group stores that it intends to rebrand and open as Reliance stores. 

More Future stores receive lease termination letters

Reliance Group’s Future Retail Ltd revealed in an exchange filing that it has received termination notices about the subleased properties. Future Retail reported receiving notifications about 342 large format stores. In addition to Big Bazaar, Fashion @ Big Bazaar, and 493 small format stores, the company also has Easy Day and Heritage stores.

“These stores have historically contributed approximately $1.75 billion to the economy. The company generates approximately 55 to 65 percent of its retail revenue from these stores. Currently, these stores are not operational for stock and inventory reconciliation,” the company noted in its filing.

Another Future Group company, Future Lifestyle Fashions, has also received termination notices from Reliance for a total of 112 stores, including 34 Central stores and 78 Brand Factory stores.

Future Group has continually said that it is communicating with Reliance Group to “maintain status quo and for safeguarding the interest of various stakeholders”. 

The dispute between Amazon and Future 

Amazon and Future Group were previously given 12 days to find a solution to their ongoing dispute by a Supreme Court bench led by Chief Justice NV Ramana. Amazon has obstructed Future’s $3.4 billion asset sale to Reliance Industries since the year 2020, because according to Amazon, Future is in violation of both the company’s 2019 deal in which Amazon had invested $200 million in Future Group. Future has denied any wrongdoing.

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