Rallye SA, the parent company of French supermarket operator Casino Guichard-Perrachon Société Anonyme, entered bankruptcy protection May 23 in order to improve its debt profile in a stable environment.

Rallye said the companies under safeguard proceedings include its Cobivia and HMB subsidiaries, as well as their parent firms Foncière Euris, Finatis and Euris. As of Dec. 31, 2018, the total net financial debt of these companies stands at €3.2 billion.

Meanwhile, Casino said in a statement the same day that these procedures do not relate to the Casino group or its operations and employees. It also said this does not affect the ongoing execution of its strategic plan.

The move came after shares of Rallye and Casino were suspended earlier in the day, sparking speculations of a restructuring, according to a Financial Times report.

Last month, S&P Global Ratings lowered its issuer credit rating on Casino Group to BB- from BB, with a negative outlook, citing the retailer's increased leverage and weak cash flows.