DSG international, the UK’s biggest consumer electronics retailer, today confirmed it is selling Electro World Hungary for one euro.
The new owner is called EW Electro Retail (EWH) will gain all nine stores, operations and employees.
John Browett, DSGi chief exec said, “We have concluded that best value for shareholders, suppliers and our staff can be achieved through the sale of our operations in Hungary to EWH.”
Basically, it’s a cut and run for DSGi, although Hungary is hardly an important market for the company. DSGi may also be fleeing Poland soon as the company is said to be reviewing operations in that much bigger country.
DSGi remains committed to some parts of Central Europe. In a statement the company said it is committed to retaining “important operations” in the Czech Republic and Slovakia, which are performing well.
DSGi is to restructure the head office in the Czech Republic “to meet the needs of customers in these two countries better”.
Electro World also has operations in Greece and Turkey. No word yet on their fate.
In April, Dixons closed several stores in Sweden and Finland and announced its intention to house the remainder under one brand. Last month, the retailer also announced a £310m rights issue to recapitalise the business, which has been battered by falling sales and the drying up of credit insurance.