New Delhi: Debt-ridden Future Retail Ltd’s CEO Sadashiv Nayak has resigned from the post seven months after his appointment, according to a filing.
Future Group CEO Kishore Biyani has been re-appointed as executive chairman for three years.
“Sadashiv Nayak, who was appointed as Chief Executive Officer effective August 25, 2021, has tendered his resignation which is effective from the closure of business hours of March 31, 2022,” Future Retail Ltd (FRL) said in the regulatory filing.
The founder and CEO of the Future Group, Kishore Biyani, has been reappointed as the Executive Chairman of FRL for another three years, the filing said.
“Based on the recommendation made by the Nomination and Remuneration Committee of the Company, we hereby inform that Kishore Biyani, who holds the position of Executive Chairman has been re-appointed for a period of three years with effect from April 1, 2022,” it said.
This would be subject to compliance of applicable provisions and other regulatory approvals including the approval of shareholders of the company, said Future Retail.
Earlier in March, FRL’s director Rahul Garg had resigned from the board.
FRL has already defaulted on a payment of Rs 3,494.56 crore to banks in January under the OTR plan and the account has been declared as NPA by the lenders.
Future Retail, which operates various formats such as Big Bazaar, Koryo, Foodhall and Easyday, is part of the 19 Future group companies, which would be transferred to Reliance Retail as part of Rs 24,713 crore deal announced in August 2020.
The deal is contested by e-commerce major Amazon and is under litigation at various forums including Supreme Court, Delhi High Court and Singapore International Arbitration Center.
In February, Reliance Retail took over the operations of at least 300 stores of FRL and has offered jobs to its employees after the Kishore Biyani-led group failed to make lease payments to landlords.
On this, FRL had said it is “committed” to the reversal of the takeover of its stores by Reliance Retail and take all such action as may be necessary to seek value adjustments.
As per the deal, all 19 Future companies operating in retail, wholesale and logistics arms, would be consolidated into one entity — Future Enterprises Ltd (FEL)– and then transferred to Reliance.
In April, Future Group companies will be conducting meetings of their respective shareholders and creditors between April 20 to April 23, 2022, to seek their approval for the Rs 24,713 crore deal.