Last Updated on 01/08/2024 by wccexam Desk
The financial condition of Kishore Biyani, chairman of Future Group, which is heavily in debt, is bad. He once had immense wealth, but now the situation is such that the company is going to be sold. Earlier Kishore Biyani had sold the mall in Mumbai, but now the company is going to close down. The Mumbai branch of the National Company Law Tribunal (NCLT) has accepted Future Retail for liquidation.
Liquidation is a bankruptcy process used to close a limited company. This process is initiated when there is no possibility of the company standing again. According to a report by Economic Times published on Business Today, Sanjay Gupta has been appointed as the liquidator of the company. NCLT has accepted the application of the company’s resolution professional Vijaykumar V Iyer.
The company has huge debt
The bench found that the maximum period of the Corporate Insolvency Resolution Process (CIRP) has expired and no resolution plan has been approved by the Committee of Creditors (COC) yet. The retailer has liabilities of more than Rs 28,452 crore, including claims of Rs 14,422 crore from financial creditors. NCLT said in its order that we believe it is suitable for liquidation, but the corporate debtor should try to sell it as a going concern.
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Talks were held with Reliance Industries
The company’s resolution professional had informed the stock exchanges in November last year that the resolution plan for Future Retail has been rejected, thereby accepting the company for liquidation. Future Group, which faced difficulties during the Kovid-19 pandemic, failed to complete the Rs 24,713 crore deal with Reliance Industries in April 2022.
How did big businessmen become bankrupt
Kishore Biyani first started his journey with his family business. In 1987, Kishore Biyani made a new change in his clothing business and turned it towards readymade clothes. Future Group opened the first Big Bazaar store in the year 2001. By the year 2006, it increased to 56 and by 2008 it became 116. However, the recession of 2008 had a bad effect on the company, but the company still withstood the crisis. Every year its new stores were opening, by the year 2019, it had a total of 295 stores. But after the year 2019, when the stores were closed and money was not coming to repay the huge debt, the company faced a huge crisis. The situation is such that today Future Retail Company is on the verge of closure.
Kishore Biyani was known as the retail king
Future Group owner Kishore Biyani was known as the retail king till a few years ago. Biyani had built an entire empire of retail business through Future Retail, but now everything is on the verge of ending.
Let us tell you, Big Bazaar is the flagship brand of Future Retail. But it did not become such a big name overnight. The story of its inception is quite old. The company was started in 1987 with the name Manz Wear Private Limited. In 1991, the name of the company was changed to Pantaloon Fashions (India) Limited. The company’s IPO came in 1992. In 1994, exclusive menswear stores were started across the country under the name Pantaloon Shoppe. The company started selling branded clothes through multi-brand retail stores in the country.
There was once immense wealth
In the year 2019, Kishore Biyani was at number 80 in the Forbes rich list. Before 2019, his business was expanding rapidly. The year 2019 was the most difficult for Kishore Biyani. After that, the crisis deepened due to Corona. Kishore Biyani kept sinking in debt and then the deal with Reliance broke down, the dispute with Amazon went on in the court for a long time, which destroyed the business.
Source (PTI) (NDTV) (HINDUSTANTIMES)