India's top retailer, Reliance, has privately defended an abrupt takeover of the stores of debt-laden rival Future Retail , saying mounting dues of $634 million compelled it to act beyond expectations, a company letter shows. Over months, Reliance had taken over the leases of more than 900 of Future's 1,500 stores, while still allowing the company to run them. As Future proved unable to pay outstanding dues and losses in its retail operations swelled, Reliance faced "compelling circumstances" and decided to exercise its legal right to take over the stores, the letter added. Neither Reliance nor Future immediately responded to a request for comment. But following Reliance's abrupt takeover of its stores, Future sought several assurances in a March 2 letter, also seen by Reuters, asking if Reliance would stick to the deal without changing its value or terms.

Source: Mint April 01, 2022 13:01 UTC