French mass-market retailer Casino Group has initiated exclusive discussions with Auchan Retail France and Rocca regarding the potential sale of its Corsican subsidiary, Codim 2.
The subsidiary operates in Corsica's four hypermarkets, nine supermarkets, three cash and carry outlets and two drive-throughs.
In the fiscal year 2023, Codim 2 generated a turnover of €332m excluding taxes.
Casino has given reassurances that negotiations are being conducted to safeguard the interests of Codim 2, its workforce and local partners.
The transition would see all activities, staff and support functions continue under the Auchan brand.
The proposed divesture is subject to review by the relevant employee representative bodies and competition authorities.
Financial terms of the negotiations have not been disclosed.
The announcement comes after Casino Group's disposal of 90 stores to Groupement Les Mousquetaires and Auchan Retail France in June 2024.
The group's financial performance in fiscal 2023 reflected a consolidated net loss of €5.66bn, a significant increase from the €316m loss in the previous fiscal year, in a challenging retail environment.
In response to these challenges, Casino Group unveiled a 'transformation plan' in April 2024, targeting a reorganisation of support services at its headquarters and logistics network.
This restructuring could result in up to 3,267 job cuts, with a focus on enhancing the convenience channel and optimising operations.
Casino Group has sought Chapter 15 bankruptcy protection in the US, aiming for recognition of its French accelerated safeguard proceedings by the American legal system.
