Future Group founder Kishore Biyani on Wednesday said the homegrown retail major lost nearly Rs 7,000 crore revenue in first 3 – 4 months of the Covid-19 pandemic due to closing of stores.which led him to sell his business to Reliance Industries Ltd.
In August this year, billionaire Ambanis Reliance Industries Ltd. announced acquisition of retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for Rs 24,713 crore,
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We got into a trap to be very honest with Covid19. In the first three-four months,We lost nearly Rs 7,000 crore of revenue. There was no way the company could have survived losing such an amount.
The problem is rent doesn’t stop, interest(on debt)doesn’t stop.We did too many acquisitions in the last 6-7 years. I thought there was no other answer but to exit, Kishore Biyani said at the Phygital Retail Convention.
Why Kishore Biyani sold future group to Reliance?
Kishore Biyani sold future group to billionaire Mukesh Ambani’s Reliance Industries Ltd. Due to covid-19 in the first three-four months, future group lost nearly Rs 7,000 crore of revenue. Biyani’s said there was no way the company could have survived losing such an amount.
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