Future Retail Investors Take on RIL’s Rebranding Stores

In a surprise move in January, Reliance Retail, a unit of Reliance Industries Ltd (RIL), took over 950-Big Bazaar stores across the country through lease rental transfer from the owners of the premises following default in rental payment by FRL. took in. In a series of letters written to regulators and the government, minority shareholders alleged property-strips between FRL promoters, the Biyani family and Reliance Retail, of compromising the interests of minority shareholders.

A shareholder of FRL, requesting anonymity, said, “The rebranding of Big Bazaar Stores with the similar looking Smart Bazaar name is a concrete step to capitalize on the brand image and goodwill of the Big Bazaar brand and part of a larger conspiracy.” Is.”

“Smart Bazaar stores have retained employees working for Big Bazaar,” the letter said. “Smart Bazaar will sell the same items Big Bazaar used for merchandise, store locations remain the same, and Big Bazaar customers with the loyalty program Future Bazaar Card.” And one can also get coupons to use the balance in the wallet to make purchases in the Smart Bazaar.”

Emails sent to the spokespersons of RIL, Future Group and Ministry of Finance remained unanswered.

Investors alleged that although RIL’s acquisition of Future Group’s businesses fell through, the acquisition of Big Bazaar Stores could be regarded as an indirect takeover of Future’s core retail business.

“The courts in India and outside should not permit Future Retail or group companies or any entity to carry on any business (at Big Bazaar stores) without the logo and the name ‘Future’,” the letter said.

RIL must disclose in the courts whether there has been an agreement between RIL and Future Retail, through which RIL can commence business in Big Bazaar stores, even though RIL has closed down. 24,713 crore acquisition deal, the letter said.

“RIL has illegally and forcefully acquired Future Retail. For this RIL should pay heavy fine and heavy compensation.”

On 29 August 2020, RIL announced 24,713 crore which included the proposed sale of Future Group’s retail, wholesale, logistics and warehousing businesses. The deal collapsed after RIL reduced the value of the proposed deal to approx. 16,000 crores. Secured creditors of FRL rejected the offer in April. Subsequently, RIL withdrew its offer to buy the assets of FRL.

Amazon had filed a petition in the Supreme Court on April 4 alleging collusion between the promoters of RIL and FRL. Amazon alleged that even after an October 2020 order of the Singapore International Arbitration Center (SIAC) barred FRL from entering into any deal with Reliance, FRL entered into a deal with RIL at least under the Big Bazaar brand. Entered into sub-lease arrangement to operate 835 retail stores. In fact, just 11 days before RIL took control of Big Bazaar stores, FRL told the courts that all retail stores would remain vested with FRL until the deal was approved by the National Company Law Tribunal (NCLT), According to the petition. Amazon alleged, “FRL has committed an elaborate and well-planned fraud to obtain favorable orders by making persistent false assurances regarding the continued vesting of its retail stores with FRL.”

An Amazon spokesperson did not respond to an email seeking comment.

While handing over the lease deed of Big Bazaar stores to the landlords, FRL stated that it “did not have the money to clear the lease rental dues and to stop the termination of the lease with the landlords”. However, FRL paid $5.6 million in interest to bondholders on FRL 14. Note in % Senior Safe 2025. “The solitary payment was enough to make a clear case of lies and obstruction of justice,” Amazon said.

RIL is using ‘SMART’ in its grocery value format stores. For example, RIL has Reliance Smart, Reliance Smart Superstore and Reliance Smart Point formats for grocery products.

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