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Kishore Biyani, the man who founded Big Bazaar, resigns as Executive Chairman of Future Retail

Kishore Biyani, the man who founded Big Bazaar, resigns as Executive Chairman of Future Retail

Biyani tendered his resignation from the position with effect from 23 January.

Kishore Biyani Kishore Biyani

Kishore Biyani, the man who founded Big Bazaar, resigned as Executive Chairman and Director of Future Retail on Wednesday. He tendered his resignation from the position with effect from 23 January. "The resignation letter of Mr. Kishore Biyani shall be placed before the Committee of Creditors, as per the Insolvency and Bankruptcy Code, 2016 read with rules and regulations framed thereunder," the group said in an exchange filing.

Future Group's Future Retail had amassed massive debt and was unable to carry on its operations. In August 2020, the group secured Rs 24,713-crore deal to sell 19 companies operating in retail, wholesale, logistics, and warehousing segments to Reliance Retail Ventures Ltd.

However, the deal was opposed by global e-commerce giant Amazon on grounds that it violated its pact through which it acquired a 49 per cent stake in FCPL, the promoter entity of FRL, for about Rs 1,500 crore. Due to Amazon's intervention, Future Retail's deal with Reliance fell through and the company went under the insolvency process.  

In a letter to Vijaykumar Iyer, insolvency resolution professional, Biyani said as chairman of the company, he had been holding on to the position even after the initiation of CIRP (Corporate Insolvency Resolution Process) and suspension of the Board.  

"As I understand I have completed all the required handholding within my capacity for you to takeover the entire control of the Company and its assets," he wrote. Biyani also said that he has also completed handover of whatever information and data were available with the earlier management or which could be retrieved from ex-employees or third parties. He said he has also shared with the resolution professional all the insight about the business and operations and various hurdles faced by the earlier management. 

 


 

Published on: Jan 25, 2023, 8:25 PM IST
Posted by: Saurabh Sharma, Jan 25, 2023, 8:20 PM IST