The Casino Group has recently signed an agreement with Rocca Group and Auchan Retail France to sell its Corsica unit, known as Codim 2.
This move comes as the company seeks to raise cash amid a debt restructuring. Codim 2 operates in Corsica and includes four hypermarkets, nine supermarkets, three cash & carries, and two drive-throughs, reports Bloomberg.
In 2023, it achieved a turnover of 332 million euros (excluding taxes). The proposed sale is subject to approval by employee representative bodies and relevant competition authorities.
All activities and employees will transition to operate under the Auchan banner.
Casino Group had been grappling with stubbornly high debt for some time. The debt accumulation posed a risk to the company’s financial stability and ability to meet its obligations.
An additional €1.2 billion of equity was injected, with contributions from the Consortium (led by Mr. Daniel Křetínský), secured creditors, unsecured creditors, and perpetual creditors. Shareholders were also considered.
Debt Reduction:
The plan aimed to reduce the Group’s financial indebtedness by €6.1 billion. This reduction primarily resulted from the equity injection and other strategic measures.
The restructuring agreement was designed to benefit all stakeholders, including customers, employees, partners, and franchisees. It aimed to safeguard jobs, maintain head offices, and support the development of Casino’s brands.
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