New Delhi: heroine Wrote to Future Retail, the parent of Big Bazaar (FRL) in an effort to prevent potential sales of the subsequent small format chain of stores operating under EasyDay, and heritage fresh brand.
In addition, the US e-tailer has offered financial help to the cash-strapped retailer. The development comes against the backdrop of an ongoing legal battle between the two retail giants on one hand and FRL’s lenders on the other hand are looking to sell the stores to recover Rs 3,500 crore.
This amount is the first installment of Rs 14,000-15,000 crore Future Group Three people with knowledge of the matter said the retailer and its lenders are owed as part of a one-time restructuring plan signed between banks. The Kishor Biyani-promoted group failed to pay the payment of the first installment late last year.
“Please note that any sale of a small format store without obtaining Amazon’s consent would be a violation of the injunction that FRL and the directors of FRL, including independent directors of FRL, continue to operate and are binding. We assist FRL. We are eager to find effective solutions for the FRL,” Amazon wrote in the letter dated January 19. It is trying to stop the sale of FRL’s proposed properties. Reliance Retail For Rs 25,000 crore, in 2019, it invested Rs 1,500 crore to pick up a 49% stake in Future Coupons (FCPL), which had a minority stake in FRL.
The Jeff Bezos-led e-tailer has since argued in various courts that its protective rights over FRL and therefore the assets of FRL cannot be sold. Reliance without his consent.
“We reiterate our willingness and ability to assist FRL in addressing any financial concerns of FRL within the framework of the agreement, including the resolution proposed in the term sheet. Samara Capital, and FRL, which considered an investment of Rs 7,000 crore in FRL,” Amazon wrote in the letter.
While Amazon and FRL did not comment on the story, sources told TOI that the lenders of FRL are not bound by any agreement with Amazon and they may invite bids for the store as these assets are with the banks. However, in December, the Competition Commission of India (CCI) temporarily suspended its approval of Amazon’s FCPL deal due to alleged concealment of facts by the e-tailer. Amazon has challenged the CCI’s decision in the National Company Law Appellate Tribunal (NCLAT) and the next date of hearing is February 2.
In addition, the US e-tailer has offered financial help to the cash-strapped retailer. The development comes against the backdrop of an ongoing legal battle between the two retail giants on one hand and FRL’s lenders on the other hand are looking to sell the stores to recover Rs 3,500 crore.
This amount is the first installment of Rs 14,000-15,000 crore Future Group Three people with knowledge of the matter said the retailer and its lenders are owed as part of a one-time restructuring plan signed between banks. The Kishor Biyani-promoted group failed to pay the payment of the first installment late last year.
“Please note that any sale of a small format store without obtaining Amazon’s consent would be a violation of the injunction that FRL and the directors of FRL, including independent directors of FRL, continue to operate and are binding. We assist FRL. We are eager to find effective solutions for the FRL,” Amazon wrote in the letter dated January 19. It is trying to stop the sale of FRL’s proposed properties. Reliance Retail For Rs 25,000 crore, in 2019, it invested Rs 1,500 crore to pick up a 49% stake in Future Coupons (FCPL), which had a minority stake in FRL.
The Jeff Bezos-led e-tailer has since argued in various courts that its protective rights over FRL and therefore the assets of FRL cannot be sold. Reliance without his consent.
“We reiterate our willingness and ability to assist FRL in addressing any financial concerns of FRL within the framework of the agreement, including the resolution proposed in the term sheet. Samara Capital, and FRL, which considered an investment of Rs 7,000 crore in FRL,” Amazon wrote in the letter.
While Amazon and FRL did not comment on the story, sources told TOI that the lenders of FRL are not bound by any agreement with Amazon and they may invite bids for the store as these assets are with the banks. However, in December, the Competition Commission of India (CCI) temporarily suspended its approval of Amazon’s FCPL deal due to alleged concealment of facts by the e-tailer. Amazon has challenged the CCI’s decision in the National Company Law Appellate Tribunal (NCLAT) and the next date of hearing is February 2.