Future Group lost Rs 7,000 cr revenue in first 3-4 months of COVID-19 pandemic
NEW DELHI: Future Group founder Kishore Biyani on Wednesday said the homegrown retail major lost nearly Rs 7,000 crore revenue in first three-four months of the COVID-19 pandemic due to closing of stores, which led him to sell his business to Reliance Industries.
In August this year, billionaire Mukesh Ambani’s Reliance Industries announced acquisition of retail and wholesale business and the logistics and warehousing business from the Future Group as going concerns on a slump sale basis for Rs 24,713 crore.
“We got into a trap to be very honest with COVID-19. In the first 3-4 months, we lost nearly Rs 7,000 crore of revenue,” Biyani said at the Phygital Retail Convention.
There was no way the company could have survived losing such an amount, he said, adding “the problem is rent doesn’t stop, interest (on debt) doesn’t stop”.
“We did too many acquisitions in the last six-seven years… I thought there was no other answer but to exit,” he stated.
He said for retailers the worst is yet to come.