British discount retailer B&M European Value Retail has agreed the sale of its loss-making German business, Jawoll, to a consortium led by AC Curtis Salta for €12.5 million.
Last November, B&M, a general goods retailer selling everything from furniture to electricals to food, wrote down the value of the 89-stores Jawoll and put it under review.
Jawoll made a loss of £15.4 million in the year to March 31 2019.
AC Curtis Salta is funded by investment company Adiuva Capital. The purchasing consortium also includes Wiebke Stern, Sebastian Dorin, Alexander Dorin, STIWEC and Jalogy Beteiligungs.
B&M trades from around 650 stores in the UK and around 100 in France, trading as Babou.
Shares in the group, down 25% so far this year, closed Tuesday at 306 pence, valuing the business at £3.1 billion.
The deal is expected to be completed by 1 June at the latest.
News by Reuters, edited by ESM. Click subscribe to sign up to ESM: European Supermarket Magazine.
