Future Retail, once a prominent part of Kishore Biyani’s Future Group, is now facing liquidation due to the inability of its lenders to find a suitable buyer for the financially troubled company. The Committee of Creditors (CoC) rejected the sole resolution plan submitted Space Mantra after multiple extensions, leading the Resolution Professional (RP) to seek liquidation of Future Retail (FRL) from the National Company Law Tribunal (NCLT).
Despite efforts to find a resolution, the bid submitted Space Mantra for FRL failed to secure enough votes from the CoC. The NCLT had granted several extensions for the completion of the insolvency resolution process, but no further extensions were given after the deadline of September 30, 2023.
The insolvency proceedings against FRL began in July 2022, and the company is now facing the possibility of liquidation in accordance with the Insolvency & Bankruptcy Code (IBC). Despite receiving multiple bids from potential buyers, including revised Expressions of Interest (EoIs), FRL has been unable to secure a viable resolution plan. The company, burdened a debt of around Rs 30,000 crore, faces an uncertain future.
Once operating over 1,500 outlets in nearly 430 cities under various retail formats, Future Retail was expected to be part of a multi-billion-dollar deal with Reliance Retail in 2020. However, this deal was rejected lenders amid legal disputes with Amazon.
The future of Future Retail hangs in the balance as the company faces the possibility of liquidation after failing to find a resolution for its financial troubles.