Once a visionary who revolutionized the shopping mall culture, the businessman now faces dire financial crisis, submerged in overwhelming debt. He's been forced to part ways with Mumbai's oldest mall. Enter the tale of Kishore Biyani of Future Group, now caught in a storm of adversity since the pandemic.
Struggling with debt, Future Group promoter Kishore Biyani sold the mall to pay off large dues. According to The Economic Times, Future Group arranged a one-time settlement of 476 crores. The company cleared debts to Bansi Mall Management Company’s lenders, mounting to 571 crores, equating to an 83% recovery for the lenders.
Mumbai's Oldest Mall Changes Hands
As per reports, K Raheja Corp has finalized the purchase on Monday. K Raheja Corp directly paid the banks, leading to a transfer of mall ownership previously held by the Biyani family, to the Raheja group entity.
Market Conditions Post-COVID Deteriorate
Mumbai's SOBO Mall was shuttered during COVID. With a vacant space of 1.5 lakh square feet and most shops closed post-pandemic, it struggles to find lessors, escalating the debt to 571 crores for Bansi Mall Management.
Company Debt Detailings
The company owes Canara Bank 131 crores, Punjab National Bank (PNB) 90 crores. Additionally, Union Bank has a due of 350 crores on Future Brands.
Biyani's Descent: From Summit to Ground
Born into a family of cloth merchants, Biyani commenced his journey in the 80s by selling stonewashed denim fabrics. He ventured into retail and founded Menswear Pvt. Ltd. in 1987, subsequently called Pantaloon Fashion India Ltd. in 1991. By 1992, the company went public, and by 1994, stores were proliferating across the nation.
Once a Wealth Magnate
Under Future Group, Big Bazaar commenced in 2002, quickly expanding its low-priced goods stores by 2003. As the chain advanced, so did Biyani's prosperity, soon earning a spot among the world's top 10 wealthiest, tagged as 'Retail King'. His net worth peaked at $2.8 billion in 2017, later dropping to $1.8 billion by 2019.
Bankruptcy Proceedings Engulf Several Entities
The financial crisis post-2008 impacted him, leading to the sale of Pantaloon to Aditya Birla Group. Despite efforts, the group owed nearly 6,000 crores by 2019. Though they handled some debt by selling a stake to Amazon, the pandemic submerged the company further into debt, now forcing many Future Group entities into bankruptcy proceedings.
