Electronics group Darty is retreating from Spain. The parent company of Vanden Borre and BCC is closing 43 shops in the country that was hit severely by the economic crisis. The closings will cost the company, which will have a new CEO from 1 May, about 30 million euro.
No guarantee for success
Darty (ex-Kesa) is expecting an operational loss of 16 million euro for the current financial year, with sales not exceeding 120 million euro. “To significantly improve our position, we would have to embark on a long and potentially expensive development trajectory, without any guarantee for success in a difficult market”, says chairman Alan Parker to French press agency AFP.
A complete retreat, which will cost Darty about thirty million euro, seemed the best solution. At the end of last year the group announced it would focus mainly on France, Belgium and the Netherlands. Earlier Darty pulled out of Italy and the UK, with an exit from the Czech Republic and Slovakia to follow.
Now boss from 1 May
At 1 May Régis Schultz will take charge at the electronics group. Schultz will come from But, the third biggest company on the French interior market, where he was CEO and stopped a further drop of the market share of the company. Before that he also worked at Kingfisher, as COO of B&Q.
Schultz has the heavy task to get downsized Darty, which had a half-year loss of 3.9 million euro, back on the rails and to take on Amazon and Cdiscount in the online market.