Dixons Retail continues to offload loss making parts of its business with the retailer selling off its central European operations just days after confirming that it is merging with Carphone Warehouse.
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Dixons Retails has agreed to sell its ElectroWorld operations, which include 26 stores across the Czech Republic and Slovakia, to NAY for a small cash consideration that will be spread over three years.
For Dixons part of the appeal of selling the business is its pre-tax losses of £5.6m on a turnover of £129m for the year ended April 2014 and follows the example it made with its French Pixmania business, which had also been making losses and having a negative impact on the Group's performance.
Dixons Retail group chief executive Sebastian James said that it felt the business would prosper in someone else's hands but it had to exit areas where it was not in a position to be the market leader.
"I am very pleased that we have been able to secure a strong future for Electroworld who will be able to flourish as a part of the NAY Group in Central Europe. Following this transaction Dixons will be a market leader in every market in which it operates, delivering on one of our key strategic objectives," he said.
Peter Zálešák and Ján Tomáš, co-founders of NAY, said that they would now be in a position to hit €300m sales in Central Europe and it would now also be in a stronger position in Slovakia and had the chance to enter the Czech market