Darty closes loss-making Spanish stores

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.

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