French supermarket retailer Casino has signed pledges to sell three of its Géant Casino hypermarkets for €42 million as it seeks to reduce debt.
The sale includes a hypermarket in Marmande which will be converted to a Système U store; a hypemarket in Onet-le-Chateau to an associate of the Système U network; and the sale of a hypermarket in Béziers to a Leclerc member, the retailer said in a statement.
Together, the stores represented net sales of approximately €76 million in 2018, for a trading loss of around €2 million.
Business Climate
Casino has been battling to improve profits in a tough business climate and faced concerns over its ability to generate enough cash to also pay off the debts of parent holding company Rallye.
In May Casino Chairman and Chief Executive Jean-Charles Naouri placed Casino's parent companies, including Rallye, under protection from creditors.
The transactions are expected to be completed at the end of 2019, following consultation with employee representatives and fulfilment of customary conditions, Casino said.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
