Strategic Finance

Dixons pays £63 million to offload loss-making e-tailer

Buyer wants to lend 'entrepreneurial vigour' to PIXmania

By Antony Savvas

Dixons Retail, owner of PC World and Currys, is paying £69 million euros (£63 million) to offload its loss-making French online retailer Pixmania.

German group mutares is acquiring Pixmania, which lost £31 million in the financial year ending 30 April 2013.

Mutares owns a number of businesses, including a manufacturer of office furniture, a bed frame maker and an auto parts firm. The deal is expected to go through after negotiations with Pixmania's work councils, which represent 1,200 staff.

Dixons said mutares had developed a "robust plan to build on PIXmania's pure play ecommerce operations".

The 69 million cash injection will be ring-fenced to support mutares' plan and for the ongoing funding of the business, said Dixons.

Sebastian James, Dixons group chief executive, said: "In order to succeed as a pure play e-tailer PIXmania needs a different kind of entrepreneurial vigour. The mutares group has a solid track record of improving and turning businesses around as well as experience of doing business in France."

Aurlien Fauvel, head of mutares France, said: "We firmly believe PIXmania has a fundamentally strong business that can achieve long term success in its markets and we look forward to discussing our future plans with the employees and stakeholders."