Santa Claus just passed for Pierre et Vacances withIn the hood, a rescue plan for a tour group that has been dreading receiving a visit from the bogeyman recently. Because the health crisis has damaged Pierre et Vacances as well as the subsidiary Center Parcs.
Gerard Bremond, the group’s founding president, will see his stake drop from 49% to less than 8%.
The number one of recreational housing lost during the financial year ending at the end of September, more than 330 million euros, a record. Its turnover decreased by 19%. However, the group has restricted the breakage thanks to a good summer since its sales rebounded 17% between July and September. But it was a huge loss for a company that was not doing well even before the crisis. No year has seen a ten-year profit, which is the balance sheet that severely impacted its debt and forced it to recapitalize. But then, qWhat are the plans of the rescue plan?
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There are two important aspects to this plan that Christophe Balerse, who follows this file for Les Echos, described as complex. First, a group of investors will take control of Pierre et Vacances. The goal is to combine Anglo-Saxon funds as well as the French management company, Atream in order to recapitalize the company to the tune of €200 million. At the same time, Pierre et Vacances will benefit from the debt reduction scheme, through a capital transfer of 550 million euros. This amount includes in particular the loan of 240 million, guaranteed by the state. This would make it possible to halve the group’s indebtedness. The plan has yet to be finalized by the end of January and will be submitted to the votes of shareholders, who will find themselves as vulnerable as its founding chairman, Gerard Bremond, who will see his stake drop from 49% to less than 8%. . Gérard Bremond who would also step down to become the honorary president of the group he created more than 50 years ago.
Astream will be the main shareholder in Pierre et Vacances
The group is also taking a strategic turn. It is a change for the era of Pierre et Vacances because the company will not only change its president but also its economic model: Out of the historical activity of real estate development, greed in the capital. The group will focus on its tourism activity as operator of 50,000 apartments and country houses that it manages under the brands Pierre et Vacances, Center Parcs and Adagio.
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The development of future enterprises of the group, which will not give up growth, will be entrusted to a real estate company dedicated to this. Its main shareholder will also be Atream, one of the group’s lifeguards, who has already invested in Center Parcs overseas. It also marks the end of the era of Pierre et Vacances who no longer invited individuals to finance their homes.
Brick Fay
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