Dixons ups stake in PIXmania

Dixons, the electronics retailer, has upped its majority stake in PIXmania, giving it close to total ownership of the loss-making online retailer.

Dixons is to pay €10m to increase its stake in the online seller of televisions, home appliances, camera and computer from 77% to 99%.

PIXmania e-Merchant solution provides the backbone to Dixons' own "multi-channel" operations as well as for a number of other third party clients, but according to Friday's announcement "the rest of its operations continue to face significant challenges."

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Dixons says the acquisition, from the founders, Steve and Jean-Emile Rosenblum, will allow it to take "full day to day control of the business".

In the 52 weeks to April 28th, 2012, PIXMania made an underlying loss of £19.8m, versus a profit of £3.5m the year before. Sales fell 9% to £665.0m from £733.5m a year earlier.

At the time of its full-year results Dixons said it was reviewing much of PIXmania's activities, given its disappointing performance, to focus on those parts of the business that deliver a competitive advantage.

Commenting on Friday's transaction, Sebastian James, Chief Executive Officer of Dixons, said: "PIXmania is the heart of our very successful UK multi-channel business and this will ensure the stability and flexibility to continue to improve the experience for the customers of that business.

"PIXmania's own trading business continues to face strong market headwinds and this move will also allow us to manage the company in line with the group's wider strategy and take the decisive actions necessary to improve its performance."

BS