French supermarket retailer Casino Group has entered unilateral purchase commitments to sell two Géant hypermarkets and two Leader Price stores for a total consideration of €24m ($27.14m).
The retailer made this decision as it identified the four stores to be making losses.
According to the company, the four stores have generated €42m sales with a loss of €1.5m in trading profit during last year.
Casino will sell the intangible business assets and real estate of Carcassonne Cité 2 hypermarket to Leclerc member.
The company will sell the other hypermarket in Château d’Olonne to an experienced professional in the retail sector. The acquirer will operate the store under Systeme U brand. The real estate of the hypermarket will be sold to a private investor.
In addition, the French supermarket chain will sell the two stores of its Leader Price brand to supermarket chain Lidl.
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All transactions are currently subject to prior consultation with employee representative bodies as well as other customary conditions. The company expects to close the disposals in the third quarter of this year.
As part of the agreements, the contracts of staff at these four stores will be continued in accordance with the law.
Last month, the French supermarket retailer Casino Group closed the divestment of 26 hypermarkets and supermarkets properties to funds managed by Fortress Investment Group for €501m ($563.5m).
In February, Casino Group and its franchisees signed agreements to sell a selection of integrated and franchised stores for a total consideration of €42m ($47.56m).