Struggling Dutch retailer Laurus said today (3 November) that it anticipates its flagship Super de Boer grocery chain breaking even in 2007, thanks to its restructuring plan that hopes eventually to see a return to profitability. The company added that Super de Boer is expected to post a positive operational cashflow in 2007.
“Execution of the business plan will lead to an improvement in quality in the stores,” the company said in a statement, without providing details of the measures it is planning.
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Laurus said that it will incur a EUR25m (US$31.94m) charge for restructuring and an impairment charge of EUR17m for intangible assets. The supermarket operator said it hopes to halve overhead costs at Super de Boer.
Laurus said it expects net debt to be less than EUR190m by the end of 2006, after it secured a refinancing deal with its banks last month. Net debt is seen at EUR120-EUR150m by the end of the year.
