A Paris commercial court on May 23 placed Rallye, the parent company of French retailer Casino, under protection from its creditors for at least six months.
The safeguard proceedings cover Rallye and its subsidiaries Cobivia and HMB, as well as their parent companies Fonciere Euris, Finatis and Euris. Safeguard proceedings, which can last up to 18 months, aim to protect companies that are not cash-flow insolvent while giving them sufficient time to reprofile their debt. The proceedings suspend debt repayments pending the approval of a safeguard plan.
Casino said in a separate statement the safeguard “will not impact the ongoing execution of its strategic plan”. Rallye owns 51.7 percent of Casino. Rallye in turn is controlled by Fonciere Euris, Finatis and Euris, all in the hands of Casino Chairman and Chief Executive Jean-Charles Naouri.