Thursday, 5 September 2013

Dixons Ejects Loss Making Pixmania Business

Electricals retailer Dixons has agreed to hive off its loss-making pure-play e-commerce business Pixmania.

German industrial group Mutares will buy the firm alongside a payment of €69 million (£58 million) from Dixons. Paris-based Pixmania lost £31 million in the year to April.

Dixons chief executive Sebastian James said: 'I am a passionate believer that Dixons succeeds where we offer our customers a fully integrated multi-channel proposition and where we are the market leader.

'In order to succeed as a pure play e-tailer, Pixmania needs a different kind of entrepreneurial vigour. I am therefore delighted that we have found a potential solution that offers the prospect of a good future for Pixmania outside the Group.

'The Mutares Group has a solid track record of improving and turning businesses around as well as experience of doing business in France. If the transaction progresses, they will acquire Pixmania with a well funded balance sheet and an excellent management team,' he said.

Like-for-like sales at Dixons' UK stores and internet business - which includes Currys and PC World - rose 6 per cent. Group like-for-like sales, including rapid declines from Pixmania, rose 2 per cent.

James said: 'Against some very good comparables last year, and despite a July that was sizzling in Northern Europe and chilly in Southern Europe - affecting electronics and air conditioning sales respectively for that month - we have had an encouraging start to the year. Margins have held up reasonably well across the Group.'

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