Frédéric Merlin 100 million euro fundraising for Rhône department store group, Digi Mart USA News (Rhône, France): Frédéric Merlin has announced a fundraising of 100 million euros for the group’s other stores, following the controversy surrounding the Shein operation at the BHV Marais department store in Paris.
According to the publisher’s report, the funds come from a bond debt raised from the English fund NorthWall Capital, with which the group has been working for nearly six months. Merlin said the fund was convinced that the group’s business model is sound and sustainable.
The model consists of acquiring large, half-empty shopping centers and downtown department stores that were all loss-making, then transforming them and guiding them toward profitability. Merlin described the investment as a renewal and said the group hopes to resume its expansion after the BHV Marais episode.
Of the 100 million euros, about 30 million is earmarked to repay a bond debt that was coming due. The remaining 70 million euros will be reinvested in the group’s current operations.
The source article is partially paywalled, so further details are not available.
