DIA loses 488 million after the takeover of Holland that has closed 663 stores
The Letterone management team led by former Lidl CEO Karl-Heinz Holland has put the scalpel in store closings and has completed a first semester of strong adjustment in all parameters.
First DIA results after taking control of Letterone, society of Mikhail Fridman which acquired most of the supermarkets after an opa during the month of May. With several months of delay the company has published the results corresponding to the period until June 30, taking into account the extraordinary adjustment measures that it has taken during the period.
With a company that ended up in the ICU, the new management team led by the former CEO of Lidl Karl-Heinz Holland He has applied the scalpel to close 633 stores with losses in Spain and Brazil, and has closed the semester with a net loss of 418 million euros.
The collapse of comparable sales has been absolute in this period, with a drop of -15.5% in June. According to DIA, the succession of bad news about his company has frightened customers, although this phenomenon begins to reverse.
"The priority of the company has been to normalize the relationship with credit insurers and the entire supplier base, recover and eliminate stock failures, and fully supply stores and warehouses, in order to be prepared to provide a complete service to our customers and return to normal as soon as possible. The positive effect of this standardization is already visible in July and August, since in this period comparable sales show a gradual recovery from the historical lows of June, "said the company in a statement to the CNMV.
To try to lose less money, the German manager has executed the road map marked from the beginning by the Fridman company. In addition to the closing of stores, business areas that caused losses (for example the online sale of non-food products) have stopped, stores that were with a franchise model have been repurchased to try to unify the offer made to customers (222 items have been acquired again according to the information submitted by the company) and provisions, losses or derecognition of certain accounts receivable, risks and liabilities that had not previously been properly provisioned have been recognized.