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

“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


“Urgent action needed against territorial supply constraints”

23/05/2018

(content provided by EuroCommerce) Speaking to mark the launch of the Benelux study on territorial supply constraints, EuroCommerce Director-General Christian Verschueren argued for the EU to act on big brands’ fragmentation of the European market.

Action owner 3i wants to keep chain after all

22/05/2018

Investor 3i wants to keep a hold of Action after all. Even though the owner made it seem like it was looking for a buyer, 3i now denies it.

Action owner wants to sell stake

18/05/2018

Action’s owner, investment firm 3i, aims to sell a part of the discount store chain next year. The Brits would want to sell a 35 % stake in the firm.

Belgian fund close to HEMA acquisition

09/05/2018

Belgian Core Equity holding is allegedly close to acquiring Dutch chain HEMA: a verbal agreement is apparently in place, all that is required are the signatures.

Walmart, not Amazon, will acquire Indian market leader Flipkart

07/05/2018

Despite Amazon’s attractive offer, Indian online retailer Flipkart has chosen for Walmart and (remarkably), Google owner Alphabet as the new owners of 75 % of Flipkart’s shares. The deal is said to be worth 15 billion dollar.

Alibaba's growth exceeds expectations

07/05/2018

Chinese retail group Alibaba has published better-than-expected quarterly results: turnover went through the roof, but its profit is under pressure because of increased investments.