(Bloomberg) -- Reliance Industries Ltd. is taking over 200 stores from struggling Future Group and transferring 30,000 workers from the Future Retail and Future Lifestyle operations, Business Standard reported.
Future Group's financial problems have led landlords to terminate leases, with a number of them contacting Reliance to negotiate new agreements for the 200 outlets, the newspaper said, citing an unidentified person with direct knowledge of the matter. As Future Group reduces its store count, Reliance will rebrand those outlets as its own.
The report comes just a day after Future Retail said it was scaling down its operations to reduce losses as it expands online and through home delivery. The retailer, with brands including Big Bazaar and fbb, has defaulted on servicing its loans and its lenders have categorized its accounts as non-performing assets.
Future Retail has lost 44.45 billion rupees ($593 million) in the last four quarters.
Emails sent to Reliance Industries and Future Group went unanswered, according to the newspaper.
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