Best Buy UK stores to close by end of the year
US firm's expansion plans halted due to poor financial performance
Best Buy will close its UK Big Box consumer electronics stores, Internet Retailing reports.
The US retail giant has 11 Big Box stores in the UK, all of which will close before the end of the year, costing the company an estimated £25m to £30m and a further £40m to £45m in asset write downs.
A consultation period with affected staff has already begun, and could potentially delay the final closing date into 2012.
"The eleven Best Buy UK 'Big Box' stores have performed exceptionally at the level of customer satisfaction, but they do not have the national reach to achieve scale and brand economies," said Roger Taylor, CEO of Carphone Warehouse, Best Buy's partner in its UK expansion.
"Our immediate focus is our people and we are confident that the large majority will be offered alternative positions elsewhere in our UK business."
Best Buy opened its first UK store in Thurrock, Essex, in March 2010. It intended to open 90 stores in conjunction with Carphone Warehouse by 2013, but rumours that its UK plans would cease began to surface in June this year.