Casino Guichard-Perrachon, a French supermarket operator with a significant presence in France and Latin America, faced significant challenges in the past year, leading to a substantial financial loss. The company reported a net loss of 5.66 billion euros ($6.14 billion) for the previous year, driven by various factors including disposals and financial restructuring efforts. This loss marks a stark contrast to the 316 million euro loss reported in the preceding year.
One of the primary contributors to this loss was the company’s ongoing debt accumulation, which reached 6.18 billion euros by the end of December, compared to 4.48 billion euros in the previous year. This high level of debt has been a persistent issue for Casino, compounded by sliding market share in its home country of France and other operational challenges.
To address its financial woes, Casino embarked on discussions with creditors to secure liquidity for its operations. These discussions culminated in a special agreement reached in October with a consortium led by Czech billionaire Daniel Kretinsky, along with banks and other creditors. As part of this agreement, the consortium committed to providing an equity injection and reducing the company’s debt by 6.1 billion euros.
The restructuring plan received approval from the Paris Commercial Court, paving the way for its implementation, which Casino expects to complete by March 27. With the impending transfer of control to the consortium, the company decided not to provide financial guidance for the upcoming year.
The restructuring represents a significant step for Casino as it seeks to address its financial challenges and position itself for future growth and stability in a competitive market environment. However, it also underscores the ongoing pressures faced by traditional brick-and-mortar retailers, particularly in the face of evolving consumer preferences and competitive dynamics in the retail industry.