From Retail Royalty to Financial Struggle: The Fall of Big Bazaar’s Former Billionaire

The economic situation of businesspeople bringing shopping culture to Mol has deteriorated significantly. This entrepreneur has sunk a lot of money into it. The situation is such that now they have to sell Mumbai’s oldest mall too. We are talking about the owner of Future Group, Kishore Biyani, who is now in deep trouble due to the pandemic.

Kishore Biyani’s Desperate Measures

Facing financial crunch, Future Group’s promoter Kishore Biyani has sold his mall to make a hefty repayment. According to Economic Times, the Future Group has settled a whopping 476 crores. The company has paid Rs. 571 crores to the lenders of Bansi Mall Management Company.

Mumbai’s Oldest Mall Changes Hands

According to reports, Raheja Corp completed the purchase of the mall on Monday. Raheja Corp made the payment directly to banks, which transferred the money to the mall company. This mall was Mumbai’s oldest, owned by the Biyani family, but now Raheja Corp has purchased SOBO Central Mall.

Mall’s Deterioration Due to COVID

During COVID, Mumbai’s SOBO mall remained completely closed. Although 1.5 lakh square feet of space is available for lease in this mall, due to the closure of most shops after COVID, there were no buyers for rent, resulting in Bansi Mall Management Company making a payment of 571 crores.

How Much Debt Does the Company Have?

The company owes Canara Bank Rs. 131 crores, while Punjab National Bank (PNB) owes Rs. 90 crores. Besides, Union Bank owes Rs. 350 crores to the Future brand.

From Throne to Ground: Biyani’s Journey on Land

Born into a family of textile industrialists, Biyani started his business journey by selling Stone Wash Denim Fabric in 1980. Later, he entered the retail business and started Menswear Private Limited in 1987, which was renamed as Pantaloon Fashion India Limited in 1991. The company went public in 1992, and in 1994, stores were opened across the country.

Possessor of Immense Wealth

Big Bazaar was launched under the Future Group in 2002, which expanded through stores in many cities by 2003. There was a store known for selling goods at low prices. Due to this, its stores were opened across the country in a short time. With the growth of the Future Group chain, Biyani also progressed significantly. The situation was such that he was included in the list of the top 10 richest people in the world. He was also called the retail king. In 2017, his net worth was $2.8 billion, which decreased to $1.8 billion in 2019.

Many Companies are Being Liquidated

However, his empire faced a setback in 2008 after the economic crisis. In order to regain control, Biyani sold his entire stake in Pantaloon to the Aditya Birla Group, but still owed Future Group about 6,000 crores. The company continued to operate until 2019 and sold a portion of the deal with Amazon to repay the loan. However, after the arrival of Corona, the company sank completely, and the situation is such that many of Future Group’s companies are being liquidated.