THE OWNER of PC World and Currys yesterday called time on troubled European arm PIXmania as part of a drive to offload loss-making businesses, while fashion retailer SuperGroup hailed a continuing turnaround.
German firm Mutares has agreed to take on Dixons Retail Group’s ailing French online trading arm, paying around 69 million euros as a dowry to support ongoing funding of the business.
Dixons shares jumped 8% in early trading and closed up 5.92% at 46.88p amid hopes the disposal will enable it to focus on its more successful UK and Ireland operation, which posted another strong performance as like-for-like sales rose 6% during the three months to July 31.
PIXmania lost £31.3 million during the year to the end of April.
Dixons is also selling another loss-making business, ElectroWorld of Turkey, to one of that country’s biggest electrical retailers for up to £2 million.
Chief executive Sebastian James said PIXmania would benefit from its new owners’ “injection of entrepreneurial vigour”.
Dixons bought a majority stake of PIXmania for 266m euros in 2006 but only took full control last year.
It then launched a major overhaul of the firm, including a withdrawal from almost half the countries where PIXmania operated and the closure of all bricks-and-mortar stores but failed to turn the division around.
Mr James cheered the “good start” to the year but remained cautious over signs of a marked pick-up in the wider economy.
Meanwhile, SuperGroup kicked off its financial year in “fine form” after posting another sales surge thanks to turnaround efforts and a revamp of it womenswear ranges.
The retailer, which owns the Superdry, Cult and SurfCo California brands, yesterday said it had delivered its seventh quarter of like-for-like sales growth in a row up 8.5% in the three months to July 28.
Shares in the group raced more than 5% ahead in early trading yesterday, closing up 5.87% at 1,227p.
business@thecourier.co.uk