Dixons is increasing its stake in online retailer Pixmania. The
UK-based electricals retailer is buying the 22 percent interest
in Pixmania currently held by its founders Steve and Jean-Emile
Rosenblum for €10 million (£8 million, $12 million).
It will also waive about €5 million (£4 million, $6
million) owed to Dixons by the French brothers.
Dixons, which already holds a 77 percent stake in the business,
says the acquisition will enable it to take full control of the
business and tackle the “significant challenges” it
faces. Pixmania reported turnover of £665 million for the 12
months ended 28th April 2012 and an underlying operating loss of
£20 million. It experienced a like-for-like sales decline of
10 percent and blamed much of its misfortune on natural disasters
in Japan and Thailand, which “severely limited” the
supply of high-margin products such as photography, camcorder and
hard-disc drives.
Pixmania currently stocks 20 different product categories in 26
countries. It also has a store network of some 20 branded
Pixmania stores across Europe. The remaining 1 per cent is
controlled by the French company Club Fotovista.
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