Embattled grocer Casino may cut 3,000 jobs

By Andrea Figueras

Embattled grocer Casino Guichard-Perrachon could cut more than 3,000 jobs in a push to return to growth after a recently completed financial restructuring.

The French company, which has been struggling for months with high debt and a loss of market share in France, said it plans to adjust the size of support services at various head offices, as well as within its logistics network. It also intends to pool a number of functions where staff aren't in direct contact with in-store customers.

"The final impact in terms of job losses will depend on the group's ability to find buyers for the hypermarkets, supermarkets and logistics platforms that are scheduled for total or partial closure," it added.

The reorganization plan would result in 1,293 net job losses within head office functions. If no buyers can be found, the plan calls for the closure of hypermarkets, supermarkets and certain logistics platforms, resulting in a maximum of 1,974 jobs losses.

At 0757 GMT, shares in Casino (FR:CO) traded 2.3% higher at EUR0.03. In the past 12 months shares have plunged 99.5%.

Last year, the grocer entered agreements with a consortium led by Czech billionaire Daniel Kretinsky, banks and other creditors to strengthen its capital base and ensure it had enough liquidity to keep operations running.

In March this year, the company completed its court-approved restructuring and handed the reins to a company controlled by Kretinsky as planned.

Casino said Wednesday that it also plans to invest 1.2 billion euros ($1.28 billion) to modernize stores by 2028. It aims to strengthen purchasing partnerships with Intermarche and Auchan to become part of alliances covering a broad range of suppliers for a 10-year period.

For 2023, Casino posted a significantly widened loss and said it wouldn't provide financial targets for the current year ahead of the planned change in control.

Write to Andrea Figueras at andrea.figueras@wsj.com

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04-24-24 0431ET

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