Rallye: stock slumps as debt worries

(CercleFinance.com) - Rallye, the parent company of the retailer Casino, was taking a hit on the stockmarket on Thursday as investors continued to question the holding company's ability to reduce its debt.


In a statement yesterday evening, Rallye itself acknowledges that the risk factor linked to the implementation of its safeguard plan has increased given Casino's financial situation, which is trying to step up its own debt reduction.

Rallye says that its safeguard plan is highly dependent on Casino's ability to distribute sufficient dividends, which are in turn dependent on the implementation of the strategic plan and the ongoing disposal program.

In this context, Rallye plans to meet with its creditors in order to examine the possibilities and possible terms of adjustment of its safeguard plan.

At 31 December 2022, the gross financial debt of Rallye's holding company stood at 3.1 billion euros, down only 78 million euros from 3.178 billion euros at end-2021.

Its net loss worsened to -1,696 million euros, compared with -334 million euros in 2021, due to a provision for impairment of 1,768 million euros on Casino shares.


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