Ceconomy, the parent company of electronics chains MediaMarkt and Saturn, is in talks with the German national bank about obtaining two billion euros in state aid. The German retailer claims to need the support due to the corona crisis.
Two billion euros
The German electronics group says it needs two billion euros in government aid, because of the damage the group is suffering as a result of the corona pandemic. Throughout Europe, the group has had to close its MediaMarkt and Saturn stores, Bloomberg reports.
Both with the German development bank KfW and with its commercial banks, the group is discussing a financing package, a spokesperson confirms. In one of the possible scenarios, the state-owned bank would lend 80 % of the amount and the commercial banks the rest, under a special German government support programme.
Ceconomy's share price has plummeted by as much as two thirds since the beginning of the year: the company now has a market value of just over 700 million euro. If the retailer completes the deal, it will be the second to receive billions in aid in Germany during the corona crisis. Tour operator TUI already received a loan of 1.8 billion euros last Friday.