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.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues 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

Sign up

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