Some recent Dutch transactions are fuelling unrest about Makro‘s future: it seems the retailer is preparing for a possible bankruptcy, but parent company Metro says that we should not read too much into those.
“Bringing in line”
Some notable transactions with the holding company Metro Cash & Carry International Holding BV (MCCIH) in Makro Netherlands’ recent annual report caught the attention of RTL News. That company, wholly owned by German MCCIH GmbH, may take over the land and buildings for book value in case of bankruptcy. Moreover, MCCIH also bought real estate, to rent it out again.
The transactions give the impression that the company is preparing for bankruptcy and therefore wants to secure some valuable properties. That assumption is not very far-fetched: since 2016, the wholesaler suffered 400 million euros in losses, and Metro also pulled the plug on Makro Belgium earlier this year – albeit after years and hundreds of millions of euros of support.
However, Metro spokesman Martin Neipp stressed that Makro Netherlands has the full support of its parent company. He told RTL that the transactions are merely “an internal legal restructuring of the portfolio of properties to bring it in line with Metro’s standards”.