2023-11-29 22:52:23
After announcing a process of selling assets, mainly real estate, Falabella discardor get rid of some of your facilities in Colombiaa country where it has a presence such as Peru, Brazil, Mexico, Uruguay, Argentina and Chile.
As explained by the company to the media The Republic: “Colombia is a strategic market with which we have a commitment since 17 years ago. We recently opened the Ikea franchise and our focus in that country is to deepen the transformation of customers’ digital experience, to complement the best experience in Falabella Retail, Sodimac and Mallplaza stores.”
As detailed in LR, the holding company has 26 stores in 11 cities. In addition, and as happened in Chile, Falabella is betting on expanding its services digitally, promoting its E-commerce platform.
Falabella: Sell assets to alleviate debt
This 2023 has been really difficult for Falabella SA. At the time of knowing its financial results corresponding to the third trimesterthe business group reported revenues of US$3,001 millionwhich would correspond to a 10% drop compared to the same period in 2022.
The above, together with a large debt, would have motivated the company to begin a process of selling assets, mainly real estate, with which they hope to raise between US$800 and US$1,000 million within a period of 12 to 15 months.
“Looking forward, the structural efficiencies achieved and the improvements that we see in our businesses allow us to optimistically see the strengthening of our level of profitability in the coming quarters, which would be accentuated with a normalization of consumption,” said Gastón Bottazzini, general manager of Falabella.
However, these efforts to improve its financial position were not enough for large rating agencies such as S&P, Fitch y Feller, rankings will be lowered of the company in various aspects, affecting its investment capacity, reaching “junk bonds” and limiting its credit capacity.
In the case of Fitch, “the downgrade of the ratings incorporates the sustained deterioration of credit profile of the company, evidenced by leverage indicators that are expected to tend to exceed investment grade thresholds.”
To the above, they added that the plans to improve their debt are “insufficient”, and that the risks in the execution of their asset sale plan and the “significant deterioration of the business” pushed their outlook to a negative spectrum.
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