French retailer Conforama nears buyout after virus hit

Cafom SA

17/06/2020 11:57

PARIS, June 17 (Reuters) - French furniture chain Conforama
said on Wednesday it was close to finding a new owner, one of
several retailers in France that have been seeking new investors
as they have struggled to secure state aid to help them cope
with the coronavirus crisis.
    Clothing stores and household goods sellers were hit hard by
lockdowns to fight the virus, compounding challenges in the
sector such as growing competition from online shopping sites. 
    Retailers in France had also struggled with anti-government
protests and transport strikes before the virus erupted.
    Many have failed to secure government-backed loans to help
them deal with the fallout from the pandemic as banks questioned
whether their problems predated the coronavirus crisis.
    Conforama, owned by South Africa's Steinhoff  SNHJ.J  and
employing 8,000 people in France, had said it was in talks to be
taken over by Mobilux, the parent company behind rival chain
But, confirming an report by BFM Business. 
    "There is no firm agreement at this stage and the
discussions are ongoing," a Conforama spokeswoman said. 
    Separately, French retail holding company Cafom  CAFO.PA 
said it was in exclusive talks to sell Habitat, a furniture
chain originally founded in Britain, to businessman Thierry Le
Guénic. 
    Cafom had put the chain up for sale in 2019, before the
pandemic hit. It did not disclose financial details. 
    Le Guénic has previously brought brands from France's
Vivarte, another struggling retail group. Vivarte Chief
Executive Patrick Puy said this week his group had received 25
bids for its La Halle clothing brand.  urn:newsml:reuters.com:*:nFWN2DO0U5
    "The government has not been very supportive to the retail
sector," Puy told RTL radio on Monday, saying it contrasted with
the way state aid was handed to carmaker Renault and national
flag carrier Air France.
    

 (Reporting by Sarah White; Editing by Edmund Blair)
 ((sarah.white1@thomsonreuters.com; + 33 (0) 1 49 49 56 85;))