Reliance Retail notifies Future Retail to terminate Sub-lease of 950 stores

Reliance Retail has sent a notice to Future Retail to terminate the sub-lease of 950 stores. Future Group firm has said in its stock exchange filing that the company has been served notices to terminate the lease of 835 Future Retail stores and 112 Future Lifestyle stores.

Reliance Retail has taken over store spaces of Future Group for which it could not pay lease rent. The stores were later sub-lent to the Future Group for operation. The stock exchange filing of Future Retail also said that notices have been received in respect of 342 large formats stores including Big Bazaar along with 493 small stores of the company.

The retail arm of Reliance Industries, Reliance Retail agreed to take over the retail and logistics business of the Future Group for Rs 24,713 crore but the deal was not closed after Amazon went to courts citing that Future Group has violated some of the contracts.

Amazon claimed that it violated Future's signed 2019 terms and conditions when a  US e-commerce giant invested $200 million in Future Group units. Amazon's position was endorsed by a Singapore arbitrator.

In August 2020, the deficit retail giant proposed selling the retail, wholesale and logistics divisions, including companies such as Big Bazaar, Koryo, Foodhall and Easyday Fashion, to Reliance for Rs 24,713 crore.