Reliance Offers Jobs To Future Retail Employees After Taking Over Its Operations
Reliance Retail has started to offer jobs to employees of Future Retail stores and bring them on Reliance Retail's payroll.
New Delhi: Reliance Industries on Saturday took over the operations of Future Retail stores and reportedly offered jobs to its staff, even as the Kishore Biyani-led group is locked in a fiasco with Amazon at several judicial forums over the sale of its business to the retail arm of the oil-to-telecom conglomerate.
Sources close to the development told news agency PTI that Reliance Retail has started taking possession of the premises in which Future Retail is operating its stores such as Big Bazaar and replaced them with its brand stores.
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They also added that Reliance Retail has started to offer jobs to employees of Future Retail stores and bring them on Reliance Retail’s payroll.
They said after the deal was announced in August 2020, several landlords approached Reliance as Future Retail was unable to pay the rent.
After this, Reliance signed leased agreements with these landlords and wherever possible, it sub-leased these premises to Future Retail Limited (FRL) so that its business could continue, they added.
According to updates from the sources, the stores which Reliance is taking over are loss-making and the balance stores will continue to be run by FRL. In this way, FRL’s operating losses will be reduced and it can continue as a going concern, they said.
However, the exact number of stores that would now come under Reliance Retail could not be ascertained.
(With inputs from PTI)
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