DIXONS Retail is selling off its loss-making Electroworld business in central Europe ahead of its £3.7bn merger with Carphone Warehouse.
The retailer said yesterday it has agreed to sell Electroworld, which has 26 stores in the Czech Republic and Slovakia, to a local rival NAY.
On completion of the deal, which is expected to take place this summer, Dixons will receive a small deferred cash consideration spread over three years. The stores made a loss before tax of £5.6m on sales of £129m in the year to April.
“Following this transaction Dixons will be a market leader in every market in which it operates, delivering on one of our key strategic objectives,” Dixons chief executive Sebastian James said.
The deal comes after Carphone on Friday agreed to sell its 46 per cent stake in Virgin Mobile France.