Amazon warns against sale of FRL’s small stores
NEW DELHI: In a letter to Future Retail’s independent directors, e-commerce major Amazon has offered financial assistance to FRL, with which it is embroiled in a legal dispute over the latter’s sale of assets to Reliance Industries for nearly Rs 25,000 crore. The US firm, however, has warned FRL not to sell its small-format chain of stores that operate under the Easyday and Heritage Fresh brands without Amazon’s consent.
“We reiterate our willingness and ability to assist FRL in addressing any financial concerns of FRL, within the framework of the agreements, including the solution proposed in the term sheet between Samara Capital, and FRL, which contemplated an infusion of Rs 7000,00,00,000 in FRL,” Amazon said.
Warning the Indian retailer about sale of its stores, Amazon said it has become aware from certain media sources that FRL is proposing to sell its small format stores, comprising the Easyday and Heritage Fresh brands.
Meanwhile, Bloomberg on Friday reported Future Retail isn’t in a position to pay for Rs 3,500 cr ($471 m) of past-due debt. “It will also miss an upcoming $14 m bond coupon deadline, the report said quoting people aware of the issue.