Casino Guichard Secures €300M Injection, Targets 43% Debt Reduction by 2030
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Published: October 26, 2023 | By Julia Evans, World Today News
PARIS – French retail conglomerate Casino Guichard, teh parent company of supermarket chains including Spar, is embarking on a meaningful financial restructuring aimed at reducing its debt by 42.9%, from €1.4 billion to €800 million. This enterprising plan is underpinned by a €300 million capital injection from its primary shareholder, France retail Holdings (FRH).
FRH, controlled by Czech billionaire Daniel Kretínsky, is poised to become the majority stakeholder in Casino Guichard, potentially acquiring a 68% ownership stake if other shareholders do not participate in the proposed capital increase.The restructuring is central to Casino Guichard’s ’Renouveau 2030′ plan, a comprehensive strategy designed to revitalize the company’s performance.
‘renouveau 2030’: A Roadmap for Growth
The ‘Renouveau 2030’ plan outlines aggressive targets for the company, projecting a gross merchandise value of €15.8 billion and an adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of €644 million by 2030. These figures are calculated after deducting lease payments.
Beyond revenue and profitability, the plan anticipates considerable cost savings exceeding €150 million between 2029 and 2030, alongside a projected positive cash flow of €286 million. These improvements are expected to significantly strengthen Casino Guichard’s financial position.
Creditor Negotiations and Timeline
Casino Guichard is currently preparing to engage with its creditors, under the guidance of court-appointed administrators, to present its financial objectives and revised business plan. The company aims to finalize an agreement with creditors before the end of the second quarter of 2026.
“FRH’s support for the operational and financial strategy proposed by the management team is essential to direct the group towards growth,” stated philippe Palazzi, CEO of Casino Guichard. “I am convinced that we are in the right market, at the right time, with the right strategy and with realistic and ambitious objectives for 2030.”
This restructuring marks a critical juncture for Casino Guichard as it navigates a challenging retail landscape and seeks to secure its long-term financial stability.
