As many as 55 entities have shown interest in acquiring the bankrupt Future Retail through the corporate insolvency resolution process.
Kishore Biyani-promoted Future Retail was a pioneer of modern organised retail in India, operating a large empire of stores comprising Big Bazaar hypermarkets, Central and FBB fashion and apparel stores and electronics retail chain eZone. However, the Covid-19 pandemic hit the retailer hard. The company had to shut down a vast majority of stores and was eventually dragged to the bankruptcy courts by banks.
According to details provided by resolution professional Vijaykumar Iyer, 48 companies have submitted their expression of interest as prospective resolution applicants in respect of Future Retail.
Prominent names among the interested entities include Mukesh Ambani's Reliance Retail Ventures, WH Smith Travel, April Moon Retail (a joint venture between Adani Airport Holdings and Flamingo Group), Jindal Power, JC Flowers Asset Reconstruction, and UV Stressed Assets Management.
The 48 entities also include several recycling companies like Ecostar Recycling, HKGN Scrap Dealer and Sarvabhishta E-Waste Management.
Apart from the 48 entities, seven more firms have entered the fray. However, they submitted their communications expressing their intent to participate in the resolution process of Future Retail after the deadline for submission of expression of interest had expired, the resolution professional said. He added that the views of the committee of creditors have been sought in their regard.
These seven entities include Darwin Platform Group of Companies, AJ Scrap Traders, All India Furniture, SF Recycling, SNVK Hospitality and Management, Ferraille Global Private and Harshal Shroff.
Troubles at Future Retail, once among the country's largest organised retailers, began when the pandemic struck. As the country was locked down in 2020 and retail stores and malls across the country shut were for months, revenues at Future Retail dried up, while debt obligations soared. It struck a deal with Reliance Retail to sell the business. However, the deal eventually fell through as e-commerce giant Amazon, which had earlier invested in a Future Retail promoter firm, launched a case against Future Retail in Singapore International Arbitration Centre. Reliance Retail, which was the lessor, took over many of the Future Retail stores later in February 2022. Banks also initiated bankruptcy proceedings against Future Retail in July 2022.
Typically there is a 330-day timeframe for resolution under the Insolvency and Bankruptcy Code. Earlier this month, Future Retail was granted 90 days extension to conclude the corporate insolvency resolution process.
The company owed around Rs 17,000 crore to a consortium of lenders. It currently has access to 302 leased retail stores—30 large format stores and 272 small format outlets.
Kishore Biyani-promoted Future Retail was a pioneer of modern organised retail in India, operating a large empire of stores comprising Big Bazaar hypermarkets, Central and FBB fashion and apparel stores and electronics retail chain eZone. However, the Covid-19 pandemic hit the retailer hard. The company had to shut down a vast majority of stores and was eventually dragged to the bankruptcy courts by banks.
According to details provided by resolution professional Vijaykumar Iyer, 48 companies have submitted their expression of interest as prospective resolution applicants in respect of Future Retail.
Prominent names among the interested entities include Mukesh Ambani's Reliance Retail Ventures, WH Smith Travel, April Moon Retail (a joint venture between Adani Airport Holdings and Flamingo Group), Jindal Power, JC Flowers Asset Reconstruction, and UV Stressed Assets Management.
The 48 entities also include several recycling companies like Ecostar Recycling, HKGN Scrap Dealer and Sarvabhishta E-Waste Management.
Apart from the 48 entities, seven more firms have entered the fray. However, they submitted their communications expressing their intent to participate in the resolution process of Future Retail after the deadline for submission of expression of interest had expired, the resolution professional said. He added that the views of the committee of creditors have been sought in their regard.
These seven entities include Darwin Platform Group of Companies, AJ Scrap Traders, All India Furniture, SF Recycling, SNVK Hospitality and Management, Ferraille Global Private and Harshal Shroff.
Troubles at Future Retail, once among the country's largest organised retailers, began when the pandemic struck. As the country was locked down in 2020 and retail stores and malls across the country shut were for months, revenues at Future Retail dried up, while debt obligations soared. It struck a deal with Reliance Retail to sell the business. However, the deal eventually fell through as e-commerce giant Amazon, which had earlier invested in a Future Retail promoter firm, launched a case against Future Retail in Singapore International Arbitration Centre. Reliance Retail, which was the lessor, took over many of the Future Retail stores later in February 2022. Banks also initiated bankruptcy proceedings against Future Retail in July 2022.
Typically there is a 330-day timeframe for resolution under the Insolvency and Bankruptcy Code. Earlier this month, Future Retail was granted 90 days extension to conclude the corporate insolvency resolution process.
The company owed around Rs 17,000 crore to a consortium of lenders. It currently has access to 302 leased retail stores—30 large format stores and 272 small format outlets.
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