Electrical retailer Darty is closing 43 of its loss-making Spanish stores as it fights competition from internet rivals against weak consumer demand in Europe.
The company said that the Spanish operations will shut in June at a cost of about €30m.
It is part of the group's move to turnaround business and focus on profitable businesses in France, Belgium and the Netherlands.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Stores in Spain were expected to report a loss for the year to April 30th 2013 of about €16m.
Last year Darty sold stores in Italy and Britain where it traded as Comet.
In February, the firm issued a warning that underlying pre-tax profits would fall short of €30m, at the lower end of market expectations, if trading failed to improve.
Shares jumped 10.59% to 47p at 09:41 on Thursday.
RD
-
Nationwide: UK house prices creep up by 0.2% - are we heading for a rebound?Nationwide’s latest house price index shows property prices inched up by 0.2% as demand warms up - will this trend go into 2024?
-
December 2023 NS&I Premium Bond winners revealed - have you won the jackpot?
Two Premium Bond holders are now millionaires as NS&I reveals December winners. Find out if you’re one of them
