Bish-Jones rids himself of loss-maker
Woolworths has announced the sale of MVC, its loss-making music and video chain, to a group of investors lead by Argyll Partners for£5.5 million.
The sale frees Woolworths at a crucial time, when the group's fortunes are less than rosy. Woolworths Group chief executive Trevor Bish-Jones said: 'The disposal of MVC removes a loss-making business from the group and allows us to be sole focused on our retail business in Woolworths.'
The deal was completed on July 30. The retailer said it creates an exceptional loss of£34 million in the half year to that date.
The group's trading for the 24 weeks to July 16 was poor, with a 4.4 per cent decline in like-for-like sales. The retailer also said that gross margins were lower than last year's.
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