Kishore Biyani's Future Retail said in a press release that the company is finding it difficult to finance the working capital needs as it is going through an acute financial crisis.
The Future Retail said, "The shareholders are aware that FRL is going through an acute financial crisis. The company has defaulted on its loan servicing and as already informed, the account of the Company has been classified as NPA by the banks. The ongoing litigation initiated by Amazon in October 2020, and which is continuing for the last one and a half years, has created serious impediments in the implementation of the Scheme, resulting in severe adverse impact on the working of the company."
"The Company has been finding it difficult to finance the working capital needs. Increasing losses at store level is a grave concern and is a vicious cycle where larger operations are leading to higher losses," read the statement issued by the company.
It further said, "The Company has made a loss of Rs. 4,445 crore in the last four quarters. Termination notices have been received for significant number of stores due to huge outstanding, and we would no longer have access to such store premises. The Company is scaling down its operations which will help us in reducing losses in the coming months. The Company is proposing to expand its online and home delivery business, to increase its reach to the customers.
"The Company is hopeful that the Scheme of Arrangement proposed with Reliance will be implemented which will be beneficial for all the stakeholders. The above is for your information and record. This may be treated as disclosure under applicable provisions of Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015," the company added.
( With inputs from ANI )
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