Posted on 11/07/2011 1:47:51 AM PST by markomalley
Carphone Warehouse has confirmed it is to close its 11 Best Buy stores in the UK, putting 1,100 jobs in jeopardy.
The news follows a decision by the group's founder, Charles Dunstone, to sell his stake in a US mobile phone joint venture with Best Buy, as first reported by Sky's City editor Mark Kleinman.
The US electrical chain will pay £813m upfront, which is expected to be returned to shareholders, as well as an additional £25m in deferred consideration.
Despite "exceptional customer satisfaction scores" the company's European arm has not performed well financially.
Best Buy Europe posted operating losses of £47m in the six months to September 30, a figure it expects to grow by up to £30m by the end of the calender year.
Andrew Harrison, the company's regional head, said the move out of the UK was designed to concentrate the group's investment and strategy into its Carphone Warehouse stores "as they offer a higher and proven rate of return".
(Excerpt) Read more at news.sky.com ...
So Best Buy could not turn a profit in Europe due to increased operating costs ? Gee. Who could not see that one coming.
Andrew Harrison, the company's regional head, said the move out of the UK was designed to concentrate the group's investment and strategy into its Carphone Warehouse stores...
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