Indian retailer Reliance has cancelled its $3.4 billion deal with Future Group, saying it “cannot be implemented” after it was rejected by Future’s secured creditors.
The deal had been caught up in legal battles since 2020 after Amazon, who partner with Future, alleged that the deal violated certain contracts and attempted to block it.
Amazon fought hard to prevent the deal going through, obtaining various legal injunctions and launching proceedings in various jurisdictions that stalled progress.
In a filing with the stock exchange, Reliance said the deal could not go through as the secured creditors of Future had voted against it.
Future was once India’s second-largest retailer with more than 1,500 outlets, but now is staring bankruptcy in the face following the collapse of the deal. An insider with knowledge of developments described the company’s fall from grace as “an unfortunate event”.
Reliance had seized control of hundreds of Future stores in February, citing non-payment of rent, after assuming many of the leases held by the cash-strapped retailer. This in turn spooked creditors, prompting some to initiate debt recovery proceedings against Future.