DSGi will shut its loss-making Finnish chain Markantalo and Swedish chain PC City.

The retailer is in negotiations to close 19 out of 23 stores under the Markantalo fascia, which was acquired in December 2005 for £33.6m. The remaining four shops will convert to Gigantti, the 26-store Finnish equivalent of DSGi’s main Nordic brand Elkjøp.

In Sweden, eight PC City stores – the equivalent of PC World in the UK – are set to close.

Almost 500 jobs will be lost although DSGi intends to relocate as many staff as possible.

A spokesman said: “We have taken the decision to focus our efforts and resources on our winning positions in each territory.”

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