Casino signs agreement to sell six ‘structurally loss-making’ stores

French supermarket retailer Casino Group has signed a unilateral purchase agreement to sell six of its ‘structurally loss-making’ stores.

French supermarket retailer Casino Group has signed a unilateral purchase agreement to sell six of its ‘structurally loss-making’ stores.

Casino will sell one Géant hypermarket in Barberey-Saint-Sulpice to a member of cooperative society and hypermarket chain Groupement E. Leclerc.

The French firm will also sell five stores, including four Casino Supermarkets and one Leader Price to Groupement Les Mousquetaires.

The total consideration of the transaction is €18.3m ($20.67m).

“These stores represented a turnover of nearly €43m and a trading loss of around €3m last year.”

According to the supermarket chain, these stores represented a turnover of nearly €43m and a trading loss of around €3m last year.

Groupement Les Mousquetaires and Leclerc will also continue the current employment contracts of the employees of the acquired stores.

Casino noted that the transaction is subject to prior consultation with employee representative bodies and the fulfilment of the usual conditions precedent. The deal is expected to close in the second half of this year.

Casino concluded the sale of its three hypermarkets, to the members of Leclerc, for €38m ($42.30m), last month.

The three hypermarkets are located outside Paris, in the towns of Castelnaudary, Anglet and Castre.

In April this year, The French supermarket chain entered an agreement, with funds managed by affiliates of Apollo Global Management (The Apollo Funds) to sell 32 store properties for a total consideration of €470m ($529m).

The deal is part of Casino’s plans to dispose of an additional €1bn of non-core assets by the first quarter of 2020 and its financial perspectives announced on 14 March.