Currys strikes £175m deal to sell Greek and Cypriot business

The division was put up for review in June as part of Currys’s plan to focus solely on its larger UK and Ireland and Nordics businesses, with aims to turnaround the loss-making Nordic arm.

The deal is expected to complete in the first quarter of 2024.

Alex Baldock, Currys’ chief executive said: “This proposed sale of Kotsovolos is an excellent outcome for Currys and for our shareholders.

“It recognises Kotsovolos’s value and accelerates its realisation.

“As a group, we’re focused on maintaining our encouraging momentum in the UK and Ireland and getting the Nordics back on track; this disposal will further strengthen the foundations on which we do both.”

Kotsovolos has 95 stores, including three in Cyprus, and made underlying earnings of £43m in the last financial year on revenues of £637m.

Athens-based buyers PPC is the largest power supplier in Greece and is the majority owner of the country’s electricity distribution network.

Currys is focusing its efforts on its UK and Ireland business, where trading has been reasonably solid, and on reviving sales at the Nordics chain, where it has been struggling for a while.

Sales in the Nordics fell 8 per cent in the 17 weeks to the end of August.

A poor performance in the division saw underlying group profits dragged lower by 38 per cent to £119m in 2022-23, offsetting a 45 per cent earnings hike in the UK.

The retailer was hit by disruption in its stores across the Nordic countries last year, leading to losses. Low demand left its competitors with excess stock, leading rival stores to slash prices while Currys kept its prices the same, meaning it made virtually no money across the region.