Casino to pay 6.25 million to Leader Price founders

Casino to pay 6.25 million to Leader Price founders

French supermarket chain Casino has been sentenced to paying a compensation of € 6.25 million to the Baud family after unlawfully ignoring the latter's preferential right to buy the Polish Leader Price stores. Instead, Casino sold the supermarkets to Tesco.

From 550 million, down to 6

The conflict originates in the sale of the Polish Leader Price supermarkets to Tesco in 2006. Leader Price founders the Baud family had sold their chain to Casino but had kept a preferential right to reclaim the chain should Casino decide to sell it. Casino claimed it has “always acknowledged the omission of notification but pleaded the unintentional nature of this omission.”

 

Furthermore, the chain objected to the “obviously excessive demands of the Baud family”, who originally demanded a compensation of € 550 million. The arbitration tribunal followed Casino in this regard, reducing the original compensation fee of € 7.25 million by € 1 million of “legal costs”. Casino immediately announced that the final compensation is “disproportionate to the Baud family's initial demands and has no significant impact on the group's accounts.”

 

Years of legal battles

Casino's cooperation with the Baud family started ten years ago, when the group started buying parts of Baud's Franprix and Leader Price chains. Things started to get worse however, when in 2007 Casino's chairman Jean-Charles Naouri blamed the family of “putting her own interests before the company's interests” - the fact that both chains had ever deteriorating results will not have helped the family.

 

Since then, legal procedures have been launched back and forth, most of them without a result. Last February however, Casino was already ordered to pay the Baud family € 52 million extra for the sale of the family's minority share in Franprix and Leader Price. The latest arbitrary decision is still not the end of the conflict, as the Baud family has revoked a part of their claims during the trial, in order to put the claims before a civil tribunal.  

Questions or comments? Please feel free to contact the editors


LVMH acquires Dior

25/04/2017

French luxury group LVMH has agreed to acquire fashion brand Christian Dior’s final 26 %. In return, it will pay 12.1 billion euro.

Jimmy Choo is looking for a new owner

24/04/2017

Shoe brand Jimmy Choo put itself up for sale after a deal with investor JAB, which currently owns 70 % of shares.

H&M wants clothing to become recyclable by 2030

24/04/2017

At the H&M Foundation-organized Global Change Awards, Karl-Johan Persson, Swedish fashion company’s CEO, said all of the group’s clothing should be fully recyclable by 2030.

Profit alert for lingerie manufacturer Van de Velde

20/04/2017

Belgian lingerie manufacturer Van de Velde, best known for its Marie Jo and PrimaDonna brands, expects its 2017 financial results to come under pressure. The company immediately announced additional investments to stimulate growth.

Primark only achieves growth through store openings

19/04/2017

Irish fashion chain Primark has seen its turnover grow more than 20 % in the past six months, but that was only thanks to new store openings and positive exchange rate fluctuations.

C&A launches 'cradle-to-cradle' collection

19/04/2017

Fashion chain C&A is launching a "Cradle to Cradle Certified Gold" t-shirt collection in June. These can be entirely recycled or reused and C&A says the shirts can even be thrown on the compost heap.

Back to top