Debt -ridden Future Retail Ltd CEO Sadashiv Nayak has resigned seven months after his appointment, according to a filing.
Future Group CEO Kishore Biyani has been re -appointed as the company’s executive chairman for three years, the rule filing said on Thursday.
“Sadashiv Nayak, who was appointed Chief Executive Officer effective August 25, 2021, has submitted his resignation effective from the close of business hours on March 31, 2022,” Future Retail Ltd (FRL) said in a regulatory filing.
Future Group founder and CEO Kishore Biyani has been re -appointed as FRL Executive Chairman for another three years, the filing said.
“Based on the recommendations made by the Company’s Nomination and Remuneration Committee, we hereby inform that Kishore Biyani, who holds the position of Executive Chairman has been re -appointed for a period of three years effective April 1, 2022,” it said.
This will be subject to compliance with applicable provisions and other regulatory approvals including the company’s shareholder approval, Future Retail said.
Earlier in March, FRL director Rahul Garg had resigned from the board.
The FRL had already failed to pay Rs 3,494.56 crore to the bank in January under the OTR plan and the account had been declared as NPA by the lender.
Future Retail, which operates various formats such as Big Bazaar, Koryo, Foodhall and Easyday, is part of 19 Future group companies, which will be transferred to Reliance Retail as part of a Rs 24,713 crore deal announced in August 2020.
The deal is contested by e-commerce major Amazon and is under litigation in various forums including the Supreme Court, the Delhi High Court and the Singapore International Arbitration Center.
In February, Reliance Retail took over operations of at least 300 FRL stores and has offered jobs to its employees after Kishore Biyani’s leadership group failed to make lease payments to landlords.
On the matter, FRL said it is “committed” to reversing the acquisition of its store by Reliance Retail and taking all actions that may be necessary to obtain a value adjustment.
Under the agreement, all 19 Future companies operating in the retail, wholesale and logistics branches, will be consolidated into one entity – Future Enterprises Ltd (FEL) – and then transferred to Reliance.
In April, Future Group companies will hold a meeting of shareholders and creditors respectively between April 20 to April 23, 2022, to get their approval for the Rs 24,713 crore deal. PTI KRH MR