Shares of Casino’s Parent Sink to New Low Amid Debt Concerns

The share price of Casino’s parent company closed at an all-time low on Wednesday, on the back of heightened concerns about the sustainability of the chain of heavily indebted companies that control the French retailer, the Financial Times reported. Casino’s chief executive Jean-Charles Naouri — a stalwart of the French establishment — controls the group through three publicly listed investment holding companies. These entities each have their own debts, putting pressure on them to keep paying dividends up the chain. The share price of Rallye — the holding company above Casino — fell more than 7 per cent on Wednesday, closing at its lowest ever price according to Refinitiv data stretching back to 1991. The group’s debt is also now trading at deeply distressed levels, with a €350m bond maturing in 2023 falling to 57 cents on the euro, suggesting that bondholders are braced for potential haircuts. Read more

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