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The Champagne house Pommery (formerly Vranken-Pommery Monopole) is reportedly in a "liquidity crisis," according to French media. The company has applied to extend a loan of 50 million euros. This step "raises critical questions about the financial stability of the company," comments the business news portal BriefGlance. At the same time, Pommery has announced that Managing Director Nathalie Vranken will also take over as Chair of the Board. Her husband Paul-François Vranken remains a member of the Board and, with 71 percent of the shares, is the majority shareholder.
Just in September, the group, which is among the largest in Champagne, sold the brand Heidsieck & Co Monopole for 50 million euros to competitor Lanson. The debt relief has apparently only been temporary. Accordingly, the group, which includes the brands Vranken, Pommery, Pompadour, Charles Lafitte, and Bissinger & Co, recorded a slight decline in revenue and earnings before taxes and depreciation of 1.4 percent. The reasons cited are the rise in production costs, especially due to higher grape prices, and a decline in the average selling price. Although Pommery can demonstrate a "strong operational performance," the "acute liquidity crisis and the challenges in refinancing pose significant risks to financial stability," writes BriefGlance. The group has already warned its shareholders that the stable dividend payment of 80 cents per share can no longer be guaranteed. The annual general meeting has already been postponed.
(al; Image: Pommery)
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