Casino Receives Potential €500 Million Lifeline from Major Shareholder Daniel Kretinsky
Paris,France – Struggling french retailer Casino may be on the verge of receiving a significant financial boost from its largest shareholder,Daniel Kretinsky. According to a report from La Lettre, Kretinsky is preparing to inject €500 million into the company’s accounts.
The potential investment aims to address Casino’s ongoing cash flow issues, which have hampered its ability to invest in both store improvements and competitive pricing – a dual investment the company urgently needs, analysts say.
Beyond immediate financial relief, the move is reportedly intended to leverage negotiations with Casino’s creditors, who are owed €1.4 billion.Kretinsky is seeking to persuade creditors to forgive an equivalent amount of debt in exchange for his substantial contribution – a “give-and-take” scenario, as described by La Lettre.
while Casino has reportedly denied plans for a new capital injection, the need for such funding is increasingly apparent given the challenges the company faces in meeting its financial obligations. The injection, if confirmed, would alleviate some of that pressure.
However, experts caution that Kretinsky’s investment is not a long-term solution. The retailer’s ultimate success hinges on the successful execution of its turnaround plan, initially unveiled two years ago. Without demonstrable improvements in performance, the financial injection will onyl serve to postpone, rather than prevent, future difficulties.
