Future Retail's Resolution Professional has filed for initiation of liquidation of the company. In a stock exchange filing late on Friday night, the company said that the RP has filed the application before the National Company Law Tribunal under Section 33 of the Insolvency and Bankruptcy Code, 2016 on November 9, 2023.

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It added in the filing that the Committee of Creditors (CoC) of Future Retail have not approved the resolution plan submitted by Space Mantra Private.

The company had disclosed on October 1 that the resolution plan submitted by Space Mantra Private Limited was put to vote for the consideration of the CoC, but was rejected as it did not get the required number of votes through e-voting.

"In view of the resolution plan not having been approved by the CoC, the next steps would be taken in accordance with the Insolvency & Bankruptcy Code 2016," the stock exchange disclosure noted on October 1.

An online construction & design platform, Space Mantra emerged as the single highest bidder for debt-ridden Future Retail among six companies that placed their bids including Pinnacle Air, Lehar Solutions, Goodwill Furniture, among others.

According to a Business Standard report from July, Space Mantra made an offer of ₹550 crore for Future Retail as against admitted claims by lenders of ₹19,400 crore, offering less than 3% in recovery. As per the report, lenders at the time had asked Space Mantra to 'sweeten' the deal further to avoid the massive 97% haircut.

This too, came after the RP for Future Retail didn't receive any serious suitors for the company despite multiple attempts. While 49 companies put in expressions of interest for the company, a binding offer was made by only six companies, which mainly included scrap dealers.

Insolvency proceedings were initiated against Future Retail by State Bank of india, which filed for this last year in April for non payment of dues, the company was then admitted into debt resolution under IBC in October 2022.

Kishore Biyani-led Future Retail, which ran formats like Big Bazaar, FBB, Central, among others, was struggling with mounting debts, exacerbated by the pandemic, which led to the closure of most of its stores. As the company struggled to stay afloat, it decided to sell its retail, wholesale and logistics assets to Reliance Industries in a Rs 24,700 crore deal in August 2020. However, following several legal roadblocks, the deal fell through in April 2022, after lenders rejected the deal.