Future Retail CEO resigns amid legal battle, debt recovery

Future Enterprises

31/03/2022 15:51

MUMBAI, March 31 (Reuters) - Future Retail's (FRL)  FRTL.NS 
chief executive Sadashiv Nayak has resigned, the company said on
Thursday, without citing any reasons, just over seven months
after he took the helm at one of India's largest retailers.
    Nayak has been with Future Group for around 18 years and had
been appointed chief executive in late August. He previously
headed Big Bazaar, Future's chain of small and large format
grocery stores. 
    The departure comes as the retailer is mired in a long-drawn
legal battle with U.S. e-commerce giant Amazon  AMZN.O  over a
$3.4 billion sale of its retail assets to rival Reliance
Industries  RELI.NS .
    Amazon has blocked the sale, citing certain contract
violations by Future and the case is now before India's Supreme
Court. Future has denied any wrongdoing.
    FRL also said in Thursday's stock exchange filing that
Kishore Biyani, founder and CEO of Future Group, was
re-appointed as executive chairman of Future Retail for three
years. 
    Future Group was hit hard by the pandemic and has been
struggling to pay off its debt. People familiar with the matter
told Reuters Indian lenders have initiated debt recovery
proceedings against Future Retail to safeguard their interests.

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 (Reporting by Abhirup Roy
Editing by Tomasz Janowski)
 ((abhirup.roy@thomsonreuters.com; + 91 22 6180 7067; Reuters
Messaging: abhirup.roy.thomsonreuters.com@reuters.net))