Dixons set to close Spanish subsidiary

Retail giant adds to Spanish economy woes by closing all 34 PC City stores, HQ and online operation

Dixons is to dump its Spanish subsidiary after hinting in its last trading update that the business's future was in doubt.

Last month, the retail giant revealed that its UK and Ireland sales slumped 11 per cent on a like-for-like basis as it laid out a four-pronged action plan to address a slump in consumer confidence.

In a statement to the London Stock Exchange this morning, Dixons Retail said that after having "considered its options" for PC City Spain, it has "commenced procedures" to exit from operations there, basically cutting its losses.

It includes the closure of all 34 stores, along with the head office and online operations of PC City.

"This decision has been made due to continuing weak consumer environment and continuing losses of the business, together with the Group's plans to focus on combined electrical and computing stores," the statement said.

Employees have been informed of the decision, the firm added, and said the compulsory redudancy scheme has been set in motion and will be lodged with the relevant Spanish Labour Authority.

"Management will also look for solutions that secure employment for as many employees as possible," the statement added.