Recently, Kishore Biyani, the Future Group CEO, shot to popularity when it got mired in a legal battle with Amazon, the US-based online retail giant. This legal issue erupted when both companies got into an emergency arbitration situation due to a contract breach. As per Mr. Biyani, the Future Group approached Amazon several times, looking to seek help in coming out from the financial-troubled situation, but Amazon refused even after the lenders invoked shares.
The financial situation of the Future Group further worsened as the Covid-19 crisis began. Mr. Biyani had no choice but to sell his retail store chain, logistics, and warehouse business to RRVL, Reliance Retail Ventures. This company is the retail segment of RIL, The Reliance Industries Limited, controlled by Mukesh Ambani. The deal was struck at Rs 24 713 crores. It led to Mr. Biyani stating that Reliance Retail came to them as a saviour. At this point, the sale of the assets was the most crucial bailout deal. He also said that Amazon was a company that languishes. Now, Amazon, a company controlled by Jeff Bezos, is trying to derail the Future Group assets' acquisitions by Reliance Retail.
While giving an interview to the Economic Times, the CEO of the Future Group said that they reached out to several investors, but no one showed any interest in saving us from our dire financial situation. We were unable to fathom their intention. Everyone seemed to leave our suppliers, employees, lenders, and vendors suffering with no hope in sight. After the Future Group's assets were sold to RIL, Mr. Kishore Biyani told the reporters that as per the agreed terms, funds could have been provided through financial institutions or affiliates by taking over our loans from current lenders, but that did not happen despite our repeated requests.
Mr. Biyani, who is considered the retail czar of India had reached out to Amazon several times and informed them about Reliance's reaching out to him several times. Initially, Amazon always backed them and was not opposed to the idea of acquiring the Future Group. But when it came to bail them out from their emergency financial situation, they were languishing. At this time, Reliance Retail helped the Future Group and took over the company helping them come out from their critical financial situation. For this reason, Mr. Kishore Biyani thinks that Reliance is a saviour for them who backed them in the time of need.