“El Corte Inglés is hiring Morgan Stanley to manage debt”

“El Corte Inglés is hiring Morgan Stanley to manage debt”

According to at least three insiders, El Corte Inglés has hired business bank Morgan Stanley to reorganise their debt of about five billion euro, says Bloomberg.

Renegotiate deals

The biggest chain of department stores in Europa is said to be in the process of renegotiating the terms for loans with different parties. El Corte Inglés is facing a difficult time: unemployment in Spain has risen to 27.2%, the highest number in 37 years. That has its effect on the chain: economic growth is shrinking and retail sales have dropped by 11% in March, when compared to the previous year.

 

At the moment sources at El Corte Inglés and Morgan Stanley do not want to confirm the reports officially, but the company did release  a statement saying “the re-ordering of its debt was part of ordinary activity in its financial area to give the company greater flexibility.”

 

Daniel Lacalle, portfolio manager at Ecofin from London, calls the deal “sensible”. “The company may try to have its debt guaranteed by assets such as its department stores, which are located in prime locations and will be very attractive for investors - even if the Spanish market continues to be tough”, he says to Bloomberg.

 

El Corte Inglés is the biggest employer of Spain, with more than a 100,000 employees. The chain has 81 department stores in Spain and two more in Portugal and it has 1.5 million visitors each day. It is also the third largest chain in the world in terms of sales, after the American chains Sears and Macy’s.

Questions or comments? Please feel free to contact the editors


EU and Japan agree in principle on trade deal

20/07/2017

(content provided by EuroCommerce) After more than four years of negotiation, the EU and Japan have reached a political agreement in principle on an Economic Partnership Agreement during Japanese Prime Minister Abe’s visit to Brussels. 

Register for the RetailDetail Day 2017 now

20/07/2017

Starting today, you can register for the annual RetailDetail Day, in Mechelen on 21 September. The widely varied program will bring together reputable retailers and digital innovators.

Ensuring your packaging is not past its prime

18/07/2017

By the end of 2017, almost a quarter of everyone on the planet will be over the age of 50. This represents a huge opportunity for retailers but they must be wise, particularly in regard to their packaging choices, if they want to engage this demographic.

Over 100 exhibitors at Shoptalk Europe

18/07/2017

(advertorial) Shoptalk Europe is the big, new event for retail and ecommerce innovation. It covers the transformational trends, technologies and business models reshaping how consumers discover, shop and buy in an age of digital disruption. 

European consumer remains upbeat

18/07/2017

Research firm GfK’s recent study shows that the European consumer trust keeps growing, but there are vast differences depending on the country.

Reckitt Benckiser evades taxes through the Netherlands

13/07/2017

British Reckitt Benckiser, which owns brands like Durex, Calgon and Nurofen, has evaded hundreds of millions of euros in taxes through the Netherlands according to Oxfam Novib after it studies the company’s financial results.

Back to top