Steinhoff’s Conforama secures funding arrangement


Steinhoff’s Conforama secures funding arrangement

Published Date: 2019-04-12 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Steinhoff’s Conforama secures funding arrangement

The French retailer says the capital will ensure the stability of its capital structure and operations.

Steinhoff's Conforama business in France has raised about €316 million in new capital that will be used to stabilise its operations.

The retailer said a French commercial court had approved an agreement between Conforama and its creditors as part of a conciliation process under French law that provides the framework for refinancing negotiations. The ruling allows Conforama to proceed with its financial restructuring. The cash would ensure the stability of its capital structure and operations, it said. At the end of December, its total debt stood at €1.72 billion, with most of that owed to other companies in Steinhoff Europe.

In a presentation on its website, the group said its revenue had declined over the past two years while expenses rose due to store openings and marketing campaigns that were initiated before December 2017, when Steinhoff alerted the market to financial irregularities in its accounts. Conforama said the effect of the Steinhoff Group's distress early last year and the loss of credit insurance had resulted in the lack of product availability.

Conforama has 212 stores in France and 101 outside of the country.

Separately, it announced that Alexandre Nodale had stepped down as deputy CEO of Steinhoff International and as a member of its management board. He will remain CEO of Conforama until the closing of the long-term financing for the group.

Its shares rose 3.5% to R1.76.

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