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.
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
-
FCA car finance compensation: £700 each expected for 14 million driversEligible motorists could begin getting a payout from next year under the financial watchdog’s planned car finance compensation scheme
-
Reeves warned against property tax shake-up – 3 ways it could backfire on first-time buyersRachel Reeves reportedly has her eye on high-end property taxes in the upcoming Budget, but there are concerns a shake-up could unintentionally hamper those trying to get on the housing ladder
