The Resolution Professional (RP) of India-based company Future Retail has filed an application for liquidation as its lenders failed to secure a reasonable buyer.

The move follows after the Committee of Creditors rejected a resolution plan submitted by sole bidder Space Mantra on 30 September.

In a stock exchange filing on 10 November 2023, the company said that the application was filed before the National Company Law Tribunal under Section 33 of the Insolvency and Bankruptcy Code, 2016.

The filing read: “The resolution plan submitted by Space Mantra Private Limited has not been approved by Committee of Creditors of Future Retail Limited (FRL), kindly note that the Resolution Professional (RP) has filed an application, before the Hon’ble National Company Law Tribunal, Mumbai Bench, for initiation of liquidation of FRL under Section 33 of the Insolvency and Bankruptcy Code, 2016 on 9 November 2023.”

According to claims submitted and approved under the insolvency process, Future Retail, which is owned by Kishore Biyani, owes its creditors more than Rs190bn ($2.28bn).

In May this year, the multi-format retailer confirmed that it received bids for its assets from six applicants but did not disclose the identities of the companies.

Lenders included the Bank of India, The Bank of New York Mellon, the Bank of Baroda, the Union Bank of India and the Central Bank of India.

According to information on its website, the retailer said that it operates more than 1,500 stores under various banners, including Big Bazaar, EasyDay Club and Heritage Fresh.

The Hindu reported that when the insolvency proceedings started in July 2022, Its store network was reduced to just 300, comprising 30 large stores and 270 small stores.