The Casino group remains in the dark. No announcement had been made on Thursday, July 27 at midnight, after negotiations held around the French distributor (Monoprix, Franprix, Naturalia, CDiscount, etc.) to reach an agreement on the restructuring of its debt and its takeover by the Czech billionaire Daniel Kretinsky (indirect shareholder of Le Monde) and businessman Marc Ladreit de Lacharrière.
Casino had set this date for Thursday to reach an agreement in principle with its creditors, who must decide on the offer presented by the tandem and give their approval. The survival of the distribution giant (200,000 employees worldwide, including a quarter in France) depends on this agreement. During a telephone press briefing on Thursday morning, Casino’s chief financial officer, David Lubek, reaffirmed this objective, saying he was “confident” insofar as “there is a common interest” in doing so.
Casino had given, on July 18, its authorization to the offer of recapitalization and restructuring of its debt presented by the billionaires Daniel Kretinsky and Marc Ladreit de Lacharrière, backed by the British investment fund Attestor. In particular, it provides for the contribution of 1.2 billion euros in new money as well as a major restructuring of debt – however a little less than initially expected. It is also planned to sell the activities in Latin America – particularly in Brazil – for which three quarters of the group’s employees work.
If an agreement in principle is indeed approved, Casino then plans to submit the plan for the approval of its current shareholders “no later than” September 30, for a restructuring of its debt expected by the end of the year. ‘year.
Rally, parent company in difficulty
As a result of the massive dilution of Casino’s current shareholders, the Rallye parent company, controlled by Jean-Charles Naouri, would be deprived “almost totally (…) of any future dividends paid by the Casino group [which] would compromise the company’s ability to execute its backup plan within the set timeframe,” according to Rallye’s statement released Thursday. Since the company does not have any other assets likely to bring it new money, it “would have no other realistic solution in the long term than liquidation or cessation of activity”, it is specified in the same document.
As for Casino, its financial situation is critical. The group unveiled on Thursday a net loss of 2.23 billion euros in the first half, due in particular to impairments, against 259 million euros a year earlier.
He also warned that there is “uncertainty” about its ability “to continue operating”, “given the legal steps remaining to be taken to implement the financial restructuring”, which the group has been working on for months in within the framework of an amicable conciliation procedure on its debt.
The latter amounted to 6.1 billion euros as of June 30, including 5.5 billion in France. A year earlier at the same time, the group’s debt was 5.97 billion.
On the stock market, the listing of the action remained suspended on Thursday, at the request of Casino, “pending the publication of a press release”. The price has melted by more than 68% since the start of the year and stood at 3.11 euros at the close on Wednesday evening.
Uncertainties for employees
Casino saw its sales fall by 4.2% in the first half, weighed down by price cuts of around 10% in its French supermarkets and hypermarkets, decided after a year 2022 when the group had maintained a more higher than the competition.
The situation of the distributor is fraught with uncertainty for its employees. Daniel Kretinsky pledged to “preserve the maximum possible perimeter” of hypermarkets and supermarkets. According to the group’s first union, Force Ouvrière, the buyers plan to “franchise a large number of stores”, a model in which the majority of the costs are borne by the manager.
Casino’s situation “augurs new transformations in which employees could once again be the adjustment variable”, also alerted the CFDT-Services, for which the passage of franchise stores would be as many “restructurings which do not say their name “. She hopes for “a real involvement of the public authorities”.
Before the National Assembly, the Minister of the Economy, Bruno Le Maire, declared on July 11 that the State would be vigilant on “the future of the 50,000 employees of the group” in France and on the maintenance of its historic headquarters. in Saint Etienne. The candidates for the takeover have said they want to keep it in this city and make it “the center of innovation” of the group.