DSGi sells Hungarian biz for €1

DSG international, the UK’s biggest consumer electronics retailer, today confirmed it is selling Electro World Hungary for one euro.

The soon-to-be owner is called EW Electro Retail (EWH) – could it be a management buyout? – will gain all nine stores, operations and employees.

Quote time from John Browett, DSGi chief exec: "We have concluded that best value for shareholders, suppliers and our staff can be achieved through the sale of our operations in Hungary to EWH."

So, it is cut and run for DSGi, although Hungary could hardly be said to be an important market for the company. DSGi may also be fleeing Poland soon - the company is reviewing operations in that much bigger country.

DSgi remains wedded to some parts of Central Europe. In a statement today the company said it is committed to retaining “important operations” in the Czech Republic and Slovakia, which are performing well.

Even so, it is to restructure the head office in the Czech Republic "to meet the needs of customers in these two countries better".

Electro World also has operations in Greece and Turkey. No word yet on their fate.

In April, Dixons shuttered several stores in Sweden and Finland and announced its intention to house the survivors under one brand. Last month, the retailer also announced a £310m rights issue to recapitalise the business, which has been battered by falling sales and the drying up of credit insurance. ®