Scandal-hit Steinhoff International agreed to sell its stake in the struggling French unit of home furnishings chain Conforama to Mobilux Sàrl, the parent company of furniture retailer BUT, for a nominal amount, the company said on Wednesday.
Steinhoff failed to secure state funding for Conforama France, which has been impacted by the outbreak of the new coronavirus.
“The disposal will secure the future of Conforama France, release the Group from its liabilities in respect of that business and generate cash to reduce of the current debt held by Conforama France,” the company said in a statement.
Steinhoff said proceeds from the share sale will allow Conforama France to finalise its restructuring and post-COVID-19 recovery plan.
The disposal will include all the share capital and voting rights, 18 real estate properties currently occupied by Conforama France for around €70 million and an option for the 100% of joint venture Conforama Casino Achats Sàrl.
The company, had signed a deal to sell Conforama Iberia in February but the deal had lapsed due to the coronavirus crisis.
Steinhoff, which is battling the fallout from a massive accounting fraud, has been selling off assets as part of plans to transform itself into a retail holding company.