Reliance Future group deal latest news: Reliance Retail will start its store at Future Group’s location

Reliance Future group deal

According Reliance Future group deal, Reliance Retail is making a new plan. The company is about to launch a new retail store brand ‘Smart Bazaar’ at Future Group locations. To make customers feel connected, the stores will focus more on everyday wear and general merchandise as compared to existing smart supermarkets from Reliance Retail.

The area of stores will be up to one lakh square feet

According to the information, big stores like Central of Future Group will spread over 60,000 square feet. These will now expanded to 100,000 square feet. Reliance Group is now looking at its current format like Reliance Mall. It also includes a department store, a mix of all formats.

Future Group’s proposal

In return, Future Group has offered Reliance to operate a central format as a Future Group franchise, so that the brand name remains. Each central has 80-100 independent brands, operating as shop-in-shop for a fee. Reliance will roll out its smaller retail brands like Seven Eleven (7-11) and Reliance Fresh to replace Future Group’s kirana stores Easy Day and Heritage.

Some formats will be changed

Similarly, some of the value apparel formats will be adapted to the trends of FBB, the value fashion chain of Reliance. Reliance is currently moving all physical assets, such as air-conditioners, lights, freezers, billing machines, trolleys and even escalator machines, from store locations.

Company in debt of 17,000 crores

Reliance is handing over those assets to Future Group. These assets will now give to banks for payment of loans of Rs 17,000 crore. This is because Future Group has defaulted. Reliance has been paying for the stock of most Big Bazaar, Easy Day, Heritage and FBB stores for the past one year. Altogether there are 950 outlets which are now closed and are currently in the possession of Reliance.

Reliance is closing stores since February

Since the last week of February, Reliance has closed hundreds of Future Group stores and started issuing notices for termination of sub leases for non-payment of rent. Reliance had become a tenant of these locations since early last year after Future Group was unable to pay the rent to the owner of the land. These were all on lease then.