Renaming of Big Bazaar begins, Reliance takes over 200 stores of Future Retail

Reliance vs Amazon vs Future: Reliance has taken over some of the stores of Future Retail and has offered jobs to its employees.

Reliance vs Amazon vs Future

Reliance Retail has started changing the brand name of Future Retail stores such as Big Bazaar. Apart from this, employees of Future Retail are also being placed on the payroll of Reliance Retail. According to news agency PTI, Reliance Industries has taken over 200 stores of Future Retail and has also offered jobs to the employees working there. Amazon, which is legally opposing the sale of Future Retail’s business to Reliance, has refused to comment on the matter for the time being.

Renaming of Big Bazaar begins, Reliance takes over 200 stores of Future Retail
Renaming of Big Bazaar begins, Reliance takes over 200 stores of Future Retail

Reliance has done this takeover at a time when the deal to sell Future Retail is embroiled in several legal battles. Actually, in August 2020, Kishore Biyani’s Future Group had announced to sell its retail business to Reliance, but Amazon opposed the deal and challenged it legally. Since then, many cases regarding this deal are going on in the Supreme Court and Delhi High Court to NCLT.

Reliance is taking its hands on loss making companies

After the deal between Reliance and Future in August 2020, the landlords approached Reliance as Future Retail was unable to pay the rent. On this, Reliance entered into a lease agreement with them and where possible, started its sub-lease so that Future Retail could continue its business. The stores that Reliance is taking over are making losses while the rest of the stores will continue to run under Future Retail. 

Thus, the operating loss of Future Retail will be less. According to industry sources, Reliance will identify such stores from which profit can be made. Apart from this, it will re-hire about 30 thousand employees of the store.