Conforama, French furniture chain which is part of the South African group Steinhoff, announced it has signed an financial agreement worth €115 million, with Tikehau Capital for over three years.
This deal comes two weeks after Conforama had agreed to sell a 17% stake in online fashion retailer Showroomprive.com to French supermarket retailer Carrefour for €79 million.
Conforama’s chief executive, Alexandre Nodale, released a statement saying, “The Conforama group now has almost €200 million of additional liquidity, ensuring its long-term financial independence and stability,”
He continued to say “This will allow the group to continue to carry out its multi-channel development projects in France and in each of the countries where it operates,”.
Retail giant Steinhoff, which owns over 40 retail brands including Poundland in Britain, is on a mission to prevent liquidation after admitting “accounting irregularities” last month, which led to the group’s share price dropping by 85%.
Earlier this month, Steinhoff secured a €60 million lifeline for its European operations.
Conforama has 14,000 employees and 315 stores. The bulk of its stores are in France while it is also present in Spain, Switzerland, Portugal, Luxembourg, Italy, Croatia and Serbia.