Paris (AFP)

The South African group Steinhoff announced Wednesday in a press release that it was selling "100% of its shares" in the furniture brand Conforama France, in difficulty, to Mobilux, the parent company of its competitor Aim, after several weeks of negotiations.

Conforama, controlled since 2011 by Steinhoff, has implemented an approved PSE on February 27, providing for the closure of 42 stores (Conforama and Maison Dépôt brands), as well as 1,900 job cuts out of 9,000 in France.

Mobilux is a joint structure of the Austrian industrial group Lutz and the American investment fund Clayton, Dubilier & Rice (CD&R).

Steinhoff "has agreed to sell its shares in Conforama France, as well as certain associated brands and domain names, to Mobilux" for an amount which is not communicated, says the South African group.

Within the framework of this operation, he continues, "Conforama France will receive new financing" in two installments: will be paid first, at the signing of the agreement, "150 million euros from a guaranteed loan by the State (PGE) of 100 million euros and 50 million euros contributed by Mobilux ".

These funds will allow Conforama "to finalize its restructuring plan and to support an ambitious post-Covid-19 recovery plan," said Steinhoff.

Then, at the close of the transaction, "Conforama France will benefit from a second EMP of 200 million euros and a capital increase of 200 million euros subscribed by Mobilux (including 50 million euros received to signature) ", the press release added.

This loan was one of the conditions necessary for this takeover, which was favored by the trade unions of the brand.

"The company will once again be able to hope for a resumption of activity worthy of the name, without having to arbitrate priorities with regard to late payments from its suppliers and be able to meet the expectations of its customers who remain loyal despite the very difficult economic conditions that Conforama has crossed ", hopes the CGT in a press release.

In April, with the closing of the stores, the activity of the distribution of domestic furniture fell by 84.9%, according to the economic indicator of the Institute of prospective and studies of the furniture (Ipea), after having already fallen by 51.6% in March.

© 2020 AFP