Dixons shuts all Pixmania stores as part of recovery plan

LONDON Wed Feb 27, 2013 6:32am EST

LONDON Feb 27 (Reuters) - Europe's No.2 electrical goods retailer, Dixons Retail, has closed all of its Pixmania stores and scaled back its online markets as part of a turnaround plan for the struggling unit.

Pixmania, which sells products ranging from fashion accessories and cameras to tablets and home appliances, has weighed on Dixons, struggling to make money in austerity-hit southern European markets.

Dixons, home to the Currys and PC World chains in Britain, Elkjop in Nordic countries, UniEuro in Italy and Kotsovolos in Greece, has closed around 30 Pixmania outlets, including stores in Spain, Portugal, Belgium and France, a spokesman said.

Pixmania's online offering in those countries will continue but the company has exited 12 online markets across Austria, Switzerland and eastern Europe. It will now operate in 14 online markets in total.

In August Dixons took day-to-day control of the unit in order to step up plans to restructure it and stem operating losses which rose to 17.1 million pounds ($26 million) for the 24 weeks to Oct. 13. Dixons also took a 45 million pound writedown on the value of the unit.