Future Retail has terminated its master franchise agreement with the Dallas, US-based convenience stores operator 7-Eleven.
The Kishore-Biyani led firm had signed the pact with 7-Eleven in 2019 for operating stores under the brand name in India.
Future Retail in a regulatory filing on Tuesday said it has terminated the Master Franchise Agreement entered into on February 28, 2019, which was executed between Future7-India Convenience Ltd, a wholly-owned subsidiary, and 7-Eleven Inc.
The agreement was also executed by the company and Future Corporate Resources Private Ltd (FCRPL) as confirming party and controlling principal for developing and operating 7-Eleven stores in India.
According to the filing, this Master Franchise Agreement "is now terminated pursuant to execution of Mutual Termination Agreement executed among the Company, Future-7, 7-Eleven, INC and FCRPL on October 5, 2021."
Set up in 1927, 7-Eleven is considered to be the world's largest convenience store. It operates 71,100 stores in 17 countries as of July 2020.
According to industry watchers, Future Retail had planned to open a store in Mumbai in early 2020 but it got delayed due to the COVID-19 pandemic and the company could not open a single 7-Eleven store.
After the lockdown, the debt level of Future Group firms mounted, following which in August last year, it had announced a Rs 24,713 crore deal to sell its retail and wholesale business as well as the logistics and warehousing arm to Reliance Industries'' retail subsidiary Reliance Retail Ventures Ltd (RRVL).
The deal has been contested by e-commerce major Amazon, an investor in Future Coupons that in turn is a shareholder in Future Retail Ltd. The deal awaits regulatory and judicial clearances.
Earlier, this month RRVL had -- for the second time -- extended the timeline for completing its Rs 24,713 crore deal with Future Group to March 31, 2022.
(With PTI inputs)
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