Casino Guichard-Perrachon, the embattled French grocer, announced that its debt had risen during the second quarter of the year as it continues to negotiate a financial restructuring with a consortium led by Czech billionaire Daniel Kretinsky.
At the end of June, Casino reported a net debt of 6.1 billion euros ($6.76 billion), compared to EUR5.1 billion at the end of March.
The company has been struggling with high debt and declining market share in its home country for several months. Earlier this year, it initiated talks with creditors to secure enough liquidity to sustain its operations.
In the second quarter, net sales dropped by 6.6% to EUR5.53 billion. In the first half of the year, Casino experienced a net loss of EUR2.23 billion, while its earnings before interest, taxes, depreciation, and amortization stood at EUR369 million, down from EUR781 million in the same period last year.
Casino emphasized that it might default on its revolving credit line by the end of August, which could trigger a cross-default on a portion of its financial obligations at its operating subsidiaries.