Business News: Sunset of prosperity of Big Bazaar, the first shopping choice of common people
The financial condition of the business that takes people to malls for shopping has become very pathetic. These businesses are heavily in debt. The situation is such that now they have to sell the oldest mall of Mumbai. We are talking about Kishore Biyani, owner of Future Group. Future Gap promoter Kishore Biyani, who is in deep trouble after the Corona epidemic, paid off the huge debt by selling his mall. According to a report, Future Group has made a one-time settlement of Rs 476 crore. The company gave Rs 571 crore to the lenders of Bansi Mall. This amount is 83 percent full recovery for the lender.
Mumbai’s oldest mall is lost
According to reports, K Raheja Corp finalized the deal to buy the mall on Monday. Raheja Corp made payments directly to the banks, which in turn transferred the money to the mall company. This mall is the oldest mall in Mumbai, owned by the Biyani family, but now Raheja Corp has purchased SOBO Central Mall.
The condition of the mall has deteriorated due to Covid
Mumbai’s SOBO Mall was completely closed during Covid. There is still 1.5 lakh square feet of space available for lease in the mall, but due to closure of most of the shops after Covid, there is no buyer for the lease, due to which the company running it, Bansi Mall Management, has to pay a loan of Rs 571 crore. Is. , In such a situation, this mall will have to be sold.
How much does the company owe to banks?
Canara Bank Rs. 131 crore, while Punjab National Bank (PNB) Rs. Rs 90 crore is outstanding. Apart from this, Union Bank has invested Rs 200 crore. There is a loan of Rs 350 crore.
How did Kishore Biyani fall from the throne to the floor?
Born in a textile industrialist family, Biyani started his business journey by selling stone-washed denim clothes in the 1980s. However, he then ventured into the retail business and started a company named Men’s Wear Private Limited in 1987, which was renamed Pantaloon Fashion India Limited in 1991. The IPO of this company came in the year 1992. After this, stores started opening across the country in 1994.
He was the owner of immense wealth
Big Bazaar was launched in 2002 under the Future Group, expanding to multiple cities with stores by 2003. It was a store that was known for selling goods at cheap prices. Due to this, its stores soon started opening across the country. With the development of the Future Group chain, Biyani also made great progress. The situation became such that he joined the list of top 10 richest people in the world. It is also called the king of retail. His net worth was $2.8 billion in 2017, which decreased to $1.8 billion in 2019.
Many companies are going through bankruptcy process
However, their crisis came after the 2008 financial crisis. To overcome this, Biyani sold his entire stake in Pantaloon to Aditya Birla Group, but even then Future Group was left with about Rs 6 thousand crores. The company continued to run till 2019 and during the deal with Amazon, the loan was repaid by selling some stake, but after the arrival of Corona, the company was completely drowned in debt and the situation is such that many companies of Future Group are now bankrupt. Through the bankruptcy process.
