Casino says Rallye has not lost control over the French retailer (updated)

Finatis SA

24/05/2019 07:42

(Adds details)
    PARIS, May 24 (Reuters) - French retailer Casino said on
Friday that the filing of its parent company for protection from
creditors had no impact on the execution of its strategy and
said the majority shareholder remained in control.
    Rallye  GENC.PA  was placed under protection from creditors
for at least six months as 70-year old retail kingpin
Jean-Charles Naouri battles to shore up the finances of his
retail empire.
    Casino is Rallye's main asset with a 51.7 percent stake.
Rallye in turn is controlled by Fonciere Euris, Finatis and
Euris, all in the hands of Casino chairman and CEO Naouri.
    Casino chief financial officer David Lubek told a conference
call that Rallye had not lost control over Casino despite the
filing for protection from creditors.
     Meanwhile short-seller Muddy Waters called the news "a
resounding vindication of the warnings we sounded".
    In 2015, Muddy Waters criticized Casino's complex structure
and accounting practices, saying the supermarket retailer was
"dangerously leveraged", and managed for the short-term.
    Casino's shares were expected to open down 5-10 percent once
they resumed trading, traders said.

 (Reporting by Dominique Vidalon, additional reporting by
Richard Lough; editing by Leigh Thomas)
 ((dominique.vidalon@thomsonreuters.com; +33149495432; Reuters
Messaging: dominique.vidalon.reuters.com@reuters.net))