PARIS: Electronics retail giant Fnac Darty announced on Sunday it had secured a €500 million ($544 million) loan guaranteed by the French state “to secure cash flow” and prepare for recovery after the coronavirus crisis.
Finance Minister Bruno Le Maire said the guaranteed loan facility was “the first that the French state has granted to a major French company” to help it over the crisis.
The group reported “very strong growth in e-commerce, in all countries, during the lockdown” but in the first quarter of the year revenue plunged 7.9 percent on a reported basis to €1.49 billion.
With stores closed sales fell 30 percent in March, a statement said.
However e-commerce doubled over the last half of March and the first days of April.
BACKGROUND
● The group reported ‘very strong growth in e-commerce, in all countries, during the lockdown’ but in the first quarter of the year revenue plunged 7.9 percent on a reported basis to €1.49 billion.
● With stores closed sales fell 30 percent in March. However e-commerce doubled over the last half of March and the first days of April.
The group had warned in mid-March it would not meet its minor growth targets and on Sunday withdrew proposed dividends for 2019 — in line with government demands.
“With more than €20 billion in loans given to 150,000 companies, the deployment of the state guaranteed loan is a reality for French companies, whatever their size,” Le Maire added.
“The state-guaranteed loan is a major lever to help them overcome this economically difficult period without trouble.”
Fnac Darty’s one-year loan supported by French banks has a five-year extension option.
