Future Retail scales back operations amid increasing losses
As Future Retail experiences a shortage of funds, the business has begun to scale back its operations in a bid to curtail losses as it struggles to finance working capital needs.
Future Retail’s bank accounts have been classified as non-performing assets by the company’s lenders, the Economic Times reported. This development has led the business to scale back operations.
“The scaling down will help in reducing losses in coming months,” the business said in a statement, ET Online reported. The decision has been taken as, “losses are mounting,” it said.
Reliance Retail recently announced that it has taken over the operations of Future Retail’s brick-and-mortar stores including its Big Bazaar chain. Following the takeover, Reliance offered jobs to the Future Retail employees to bring them onto Reliance Retail’s payroll, sources close to the matter told ET Bureau.
The long-stop date for Future Retail’s planned deal with Reliance Industries has been extended until September 30, 2022 as Future’s legal battle with Amazon continues to wage on. Amazon is attempting to block Future Retail from holding a shareholders meeting to discuss its proposed Reliance Industries deal and has taken the case to the Delhi High Court and National Company Law Tribunal.
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