Steinhoff will receive about R1.3bn in proceeds from related property sales, and a release from liabilities
Embattled retailer Steinhoff said on Wednesday it had agreed to sell retail group Conforama France for a nominal sum.
The sale to Mobilux Sàrl, the parent company of retailer BUT, will release Steinhoff from its liabilities in respect to Conforama, while the group will also sell 18 real-estate properties occupied by Conforama for about €70m As part of the transaction, Conforama France will receive new funding from Mobilux, which “will enable Conforama France to finalise its restructuring project and support an ambitious post-Covid-19 recovery plan, while honouring its commitments to suppliers and partners”.
The disposal will secure the future of Conforama France, release Steinhoff from its liabilities in respect of that business and generate cash to reduce of the current debt held by Conforama France, the group said. In afternoon trade on Wednesday, Steinhoff’s share had risen 2.02% to R1.01, having lost more than 98% of its value over the past three years.
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