Dixons has managed to offload its struggling e-commerce French Pixmania operation but has paid millions to get itself shot of the business to a German buyer.
The retailer has seen its results dragged down in the last few quarters by the poor performance of Pixmania and indicated at its last trading statement that it was close to completing an exit strategy.
Pixmania generated losses before tax of £114.3m in the year to April 2013 on turnover of £397.7m, and delivered a retail operating loss of £31.3m.
Matures AG, a German industrial holding company, will take over Pixmania and has plans to revitalise the operation and do more to develop the firm's software platform.
Under the terms of the deal Dixons will provide around £59m of ring-fenced capital to support Pixmania after the purchase and the retailer's group chief executive Sebastian James said that it had been pleased with the speed it had been able to conclude a deal that was first mooted at the start of the month and the firm would "flourish under new ownership".
Head of Mutares France Aurélien Fauvel said: “I am very pleased that we are now able to proceed with this transaction following positive discussions with employee representatives. We firmly believe that Pixmania can achieve long-term success and can look forward with confidence.”