July 10 (Bloomberg) -- Praktiker AG, a German home-improvement retailer, said it’s considering insolvency for itself and units after some of its creditors didn’t approve more financing.
Excessive debt and lack of liquidity are reasons for declaring insolvency, the company said in a statement today.
Alternative financing became necessary after the company failed to sell a stake in Luxembourg-based unit Batiself SA because the buyer’s board didn’t approve a deal, Praktiker said. Proceeds from a sale had been “firmly included” in the retailer’s financing plan from last year, it said.
Shares in Praktiker were floated by then-parent Metro AG in 2005. The company’s current shareholders include Donau Invest Beteiligungs GmbH with a 10 percent stake and Maseltov Ltd. at 9.6 percent, according to its website.
Praktiker posted a net loss last year of 190 million euros ($245 million) on revenue of 3 billion euros, according to data compiled by Bloomberg.
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