May 24, 2019 / 6:02 AM / a year ago

Muddy Waters says Rallye news is vindication of its warnings

PARIS, May 24 (Reuters) - Short-seller Muddy Waters said on Friday that news Rallye, the parent company of French retailer Casino, had been placed under protection from creditors was “a resounding vindication of the warnings we sounded”.

In 2015, Muddy Waters criticized Casino’s complex structure and accounting practices, saying the supermarket retailer was “dangerously leveraged”, and managed for the short-term.

The firm has rejected the criticism. A spokesman for Casino declined to comment on Muddy Waters statement when contacted by Reuters.

Paris commercial court on Thursday placed Rallye, the majority shareholder of Casino, which is battling investor concerns over its high debt, under creditors’ protection for at least six months.

Reporting by Dominique Vidalon, additional reporting by Richard Lough; editing by Leigh Thomas

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