Brief: Damartex Announces A Reorganization Project

Damartex SA

09/06/2020 16:42

June 9 (Reuters) - DAMARTEX SA  ALDAR.PA :
    * ANNOUNCES A REORGANIZATION PROJECT AND STRENGTHENS ITS
FINANCIAL
STRUCTURE
    * THE GROUP CONFIRMS THAT IT EXPECTS HEAVY LOSSES FOR THE
FINANCIAL YEAR.
    * WORKING TO IMPROVE ITS BALANCE SHEET BY DISPOSING OF
NON-STRATEGIC ASSETS FOR €15 MILLION
    * COVID-19 CAUSED CLOSING OF 170 STORES FOR TWO MONTHS AND
LED TO
A SIGNIFICANT SLOWDOWN IN ITS ACTIVITY (-23.9% FROM MARCH TO
MAY)
    * PLAN HAS BEGUN TO PRODUCE ITS FIRST EFFECTS IN H1 OF
2019-2020
FY WITH A RETURN TO GROWTH IN BUSINESS AND A SIGNIFICANT
IMPROVEMENT IN CURRENT OPERATING INCOME
    * COST-CUTTING PROJECTS WOULD LEAD TO THE LOSS OF 195 JOBS
    * PROPOSES TO CARRY OUT A CAPITAL INCREASE OF APPROXIMATELY
€30
MILLION WITH SHAREHOLDERS' PREFERENTIAL SUBSCRIPTION RIGHTS BY
THE END OF THE YEAR
    * 159 JOB CUTS WOULD BE IN FRANCE
    * IN DISCUSSIONS WITH ITS BANKING PARTNERS FOR THE
RENEGOTIATION
OF ITS COVENANTS
    * IN DISCUSSIONS ON IMPLEMENTATION OF A STATE-GUARANTEED
LOAN
(SO-CALLED PGE) OF 80M€
    * GROUP IS WORKING TO IMPROVE ITS BALANCE SHEET BY DISPOSING
OF
NON-STRATEGIC ASSETS FOR €15 MILLION

Source text: https://bit.ly/37dggGc
Further company coverage:  ALDAR.PA 

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