Eurocash will close 59 Delikatesy Centrum stores. It will create a write-down of approximately 80 million PLN

By the end of 2021, Eurocash decided to close 59 of its 414 stores in the Delikatesy Centrum chain, as a result of which it will have to write off about 80 million PLN, which will translate into financial results for 2021 – the company said in a statement

“The reason for the decision is the Board of Directors’ analysis of the profitability of the above-mentioned stores and the possibility of implementing repair programs in individual stores. As a result, a write-off will have to be made, estimated at about PLN 80 million, which will directly translate into the financial result for 2021. The final amount of the above-mentioned write-off will be known after reviewing the data Semi-annual financial statements by a certified auditor” – it was written in the statement.

It was added that the decision to close the stores will not affect the retail development strategy of the Eurocash Group, and in the long term will translate into an improvement in the profitability of the retail sector, which should be evident from next year, allowing for a more effective development of the Delikatesy Centrum chain.

At the same time, the company estimated the dynamics of changes in the value of EBITDA after taking into account the impact of IFRS 16 in the retail sector.

Without taking into account the impact of the reduction to take place in the second quarter of 2021, the dynamics of changes in EBITDA after IFRS 16 in the retail sector should remain in the second quarter of 2021 compared to the second quarter of 2020 is at the same level as in the first quarter of 2021 compared to the first quarter of 2020” – he wrote.

Currently, Delikatesy Centrum’s sales network has nearly 1,000 franchise stores, more than 150 in joint ventures, and more than 400 owned stores. (PAP Biznes)

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