Rallye, the indebted parent of French retailer Casino, said on Wednesday it has entered into exclusive talks to sell sports equipment unit Go Sport to French property group Financiere Immobiliere Bordelaise (FIB).
If the deal goes through, it will see Rallye sell Go Sport for a symbolic one euro, without giving any liability warranty, the statement said. The sale could be completed before end-June.
Go Sport, a company Rallye bought in 1990, employs around 2,000 people and generated revenue of 625 million euros ($743.06 million) in 2019.
In March 2020, the Paris Commercial Court approved safeguard plans for Casino’s parent companies Rallye, Fonciere Euris, Finatis and Euris, whose combined debts stood at 3.3 billion euros.
The safeguard plans involve the re-scheduling of debt over 10 years from 2023.
The Go Sport sale depends the consultation of employee representatives and approval by antitrust authorities.
Source: Reuters.com