B&M has sold its entire German business Jawoll for €12.5m after "disappointing" financial results and a strategic review into its operations in the country.
The move means the bargain retailer has pulled out of Germany after selling its entire 80% shareholding to a purchasing consortium led by AC Curtis Salta, a firm funded by Adiuva Capital.
Liverpool -based B&M said on Wednesday the completion of the transaction is expected to occur within the next 28 days or by a long-stop date of June 1.
In November, B&M wrote down the value of its 89 stores in Germany, putting it under review . It said the results were due to "distribution issues and weak sales performance", despite overall group revenue rising by over 21%.
B&M said the consolidated losses of its German stores as reported for the financial year ended March 31, 2019 were £15.4m, and the value of their gross assets in September 2019 was £192.6m.
Revealing interim results in November, Simon Arora, chief executive of the firm, said performances of its French leg Babou and its German Jawoll were "contrasting".
He explained: "Babou has made good progress with the planned changes to its product offer.
"The performance of Jawoll has continued to be impacted by trading and operational issues and its financial performance remains disappointing.
"The Board is carrying out a strategic review of Jawoll in order to determine its future.”
B&M has 650 outlets in the UK, also trading in 100 French stores as Babou.
It comes the day after it sold its distribution centre in Bedford - one of the UK's biggest - to German firm Deka Group.
