More than 3,000 jobs at risk at Casino

24th Apr 2024 12:08

(Sharecast News) - Beleaguered French retailer Casino Guichard-Perrachon is to cut up to 3,200 jobs as part of wide-reaching overhaul.

The debt-laden supermarket chain completed a court-approved restructuring last month led by France Retail Holdings, which is controlled by Czech billionaire Daniel Kretinsky.

It has already reached agreements to sell 288 supermarkets and hypermarkets in France, leaving it with more upmarket brand Monoprix and city centre chain Franprix, and on Wednesday unveiled plans to turn the remaining business around.

Casino said it would pool support services between brands, re-internalise skills and strengthen purchasing partnerships with rivals Intermarche and Auchan.

The overhaul will mean the loss of between 1,293 and 3,267 jobs, however, including reducing the St Etienne head office workforce by 554.

A further 1,974 jobs will be cut if no buyers can be found for various hypermarkets, supermarkets and logistics platforms.

The retailer, which intends to invest €1.2bn modernising remaining stores, said: "This plan will secure the group's long-term future and make it gradually more agile, so that it can ultimately return to growth and become France's lading convenience store retailer."

Philippe Palazzi, chief executive, added: "After the group's financial restructuring and its refocusing on convenience brands, this transformation plan represents a key step towards setting Casino on a new growth trajectory."

Palazzi has replaced Jean-Charles Naouri, the French retail tycoon who led Casino for more than two decades.

Losses and debts have soared in recent years at the retailer, which has around 8,000 stores in France and overseas, while its market share has weakened.

As at noon BST, shares in Casino were up 4%.