Delhaize pays off "expensive" debts faster

Delhaize pays off "expensive" debts faster

Belgian supermarket chain Delhaize has bought back 450 million dollars (420 million euro) of debt over the past few days, which would lower its yearly interest burden by 21 million euro - according to ING.

4 to 6.5 % during a period of near-zero interest

Considering the current financial climate, Delhaize would be crazy to pay 4 to 6.5 % on its debt when current interest rates approach zero %. The company clearly had the same view, buying back 170 million dollars (out of a 300 million dollar loan) which would expire in 2019 and has a 4.125 % interest rate. On top of that, it has bought back 280 million dollars (out of a 450 million dollar loan) with an expiration date in 2017 and a 6.5 % interest rate.

 

Delhaize has to give its "debtors" an extra, but the surcharge pales to the savings it would realize: ING believes Delhaize could reduce its yearly interest 23 million dollars (21 million euro), business paper De Tijd heard.

Questions or comments? Please feel free to contact the editors


Amazon prepares own sports clothing collection

17/10/2017

Amazon is allegedly planning its own collections of sports clothing, having contacted manufacturers working for chains like Gap and Uniqlo. These are currently only producing small numbers of clothing for testing purposes.

H&M invests in old clothing recycling

12/10/2017

Swedish H&M has acquired a minority stake in Re:newcell, which targets the recycling of old clothing in order to ensure a more sustainable fashion industry.

Uniqlo's profit more than doubled

12/10/2017

In the past fiscal year, Japanese Uniqlo more than doubled its profit on the back of a 4 % turnover increase. The fashion chain forecasts international sales to soon outgrow those of Japan.

Gucci also halts fur production

12/10/2017

Fashion brand Gucci will no longer use fur in its clothing and accessories, as CEO Marco Bizzarri promised during his Kering Award for sustainable fashion acceptance speech for the London College of Fashion.

Fashion platform About You launches in the Netherlands and Belgium

11/10/2017

German fashion web shop About You, the second largest online European fashion retailer, officially launched in Belgium and the Netherlands following an unofficial launch in the Netherlands some time ago.

Luxury group LVMH exceeds third quarter expectations

10/10/2017

French luxury group LVMH has surpassed turnover expectations in the first three months of its fiscal year. Louis Vuitton and Christian Dior’s parent company managed a 12 % like-for-like turnover growth, to 30.1 billion euro.

Back to top