Woolworths sells MVC entertainment stores for £5.5 million |
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Published
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Mon, 01 Aug 2005 14:05
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LONDON: Retailer Woolworths has sold MVC, its specialist entertainment stores chain. Sources announced and confirmed that MVC has gone for £5.5 million.
The stores have been bought by a consortium led by Argyll Partners, said the sources.
| MVC has been incurring losses over the years and Woolworths had put it up for sale in March, clarifying it wanted to complete the deal by year-end. It had also closed down some 14 stores. Part of the MVC's problems could be traced to the failed buy-out plan of Apax Partners, which had made a 837 million pound bid on Woolworths in April. Apax then reneged on the offer citing the group's pension deficit (£66m at the end of January last year), problems with investment and the costs of closing MVC as reasons. Another chain stores, Music Zone, too had evinced interest in buying MVC.
MVC sells CDs, DVDs, video games and digital music downloads.
Woolworths said tough conditions in the retail segment had impacted on its business with same-store sales at its core Woolworths chain 4.4% lower in the 24 weeks to July 16. MVC losses had fallen in the past six months and sales had picked up following the Live8 concert.
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