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Aiming Conforama, on the verge of bankruptcy

2020-05-18T07:56:09.761Z

The Covid-19 crisis and the store closures for two months left the furniture specialist bloodless.Conforama's financial difficulties whet appetites. The furniture specialist, third on the French market after Ikea and But, is in a very bad patch. The Covid-19 crisis and the store closures for two months left the brand bloodless. Conforama, undergoing restructuring before the Covid crisis struck, has requested a State Guaranteed Loan (PGE) of more than 300 million euros. Negotiations, conducted ...



Conforama's financial difficulties whet appetites. The furniture specialist, third on the French market after Ikea and But, is in a very bad patch. The Covid-19 crisis and the store closures for two months left the brand bloodless. Conforama, undergoing restructuring before the Covid crisis struck, has requested a State Guaranteed Loan (PGE) of more than 300 million euros. Negotiations, conducted under the aegis of the Interministerial Industrial Restructuring Committee (Ciri) in Bercy, with LCL, HSBC, Crédit du Nord and BNP Paribas, have stalled. Friday, BNP Paribas did not show up at the last meeting dedicated to the EMP, despite a state guarantee rate raised to 90%. "Discussions are in fact suspended for the moment" deplores the management of Conforama.

Read also: Conforama to finalize the sale of its stores

Without this contribution of fresh money, the furniture brand will be placed in a few weeks in receivership, like its competitor Alinea, which we learned about filing for bankruptcy this weekend. Conforama's cash flow problems have already forced it to reopen only 20 stores out of nearly 200 in France, and it can no longer pay its suppliers.

Aim has moved closer to us, but only wants to acquire the brand as part of a buyout of assets in court

Conforama

In this context, But has manifested itself. "Aim has moved closer to us, but only wants to acquire the brand as part of an asset buyout in court," says Conforama. The Goal offer does not, in our view, offer enough guarantees. Our plan A is still to obtain an EMP to compensate for the loss of activity linked to the Covid. ”

Read also: Conforama endangered by inertia of BNP Paribas, accuse unions

But would be willing to pay 200 to 300 million euros. He says the two brands are complementary. "In the event of a takeover, our priorities would be employment at Conforama, But, but also our suppliers, who are partly the same as those of Conforama and are therefore currently undermined by its difficulties", explains Alexandre Falck, the CEO of Goal.

Source: lefigaro

All business articles on 2020-05-18

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