UK retail chain MVC sold for UKP 5.5 million
Retailer Woolworths has sold its MVC subsidiary, which operates 67 music, video and game stores around the UK, to an investment group led by Argyll Partners for UKP 5.5 million, in a deal described as "disappointing" by some analysts.
Retailer Woolworths has sold its MVC subsidiary, which operates 67 music, video and game stores around the UK, to an investment group led by Argyll Partners for UKP 5.5 million, in a deal described as "disappointing" by some analysts.
The arrangement ends a lengthy and difficult saga for Woolworths, which back in April saw an acquisition bid for the entire company worth more than UKP 800 million falling through, with losses from MVC being fingered as one of the factors in the collapse of the deal.
MVC's 14 "worst performing" stores were shut earlier this year, leaving 67 stores up for sale - but a number of bidders dropped out of the running, leading to what Baird analyst Paul Smiddy describes as a "very disappointing" sale price for the chain.
Woolworths expects to record an exceptional loss of UKP 34 million in the first half of the year, ended July 30th, as a direct result of the sale.