Solid mid-market position as French furniture retailer, with strong brand awareness and diverse product mix. Tight cost control and working capital management. Improved purchasing terms from partnership with XXXLutz Marken GmbH. A material liquidity buffer thanks to a €100 million undrawn RCF and a sizeable amount of cash on balance sheet. No geographical diversification, with all of the group's revenue generated in France, a highly competitive and mature market. Exposure to the furniture retail business' vulnerability to disposable income squeeze and some degree of reliance on the real estate market. Profitability constrained by the inherent volatility of the business and relatively high operating leverage. Substantial debt burden and relatively modest scale exacerbate the risk of rapid deterioration of the credit
