Baugur departs US after $12m Bonus Stores sale

The management of Baugur's troubled US business, Bonus Stores, is to sell its remaining outlets for $11.7 million (£7.3 million) after failing to find a new business partner.

Bonus hoped to auction 239 of its 336 stores and find a backer to replace Baugur, enabling a 97-strong chain to survive. However, this week Variety Wholesalers, based in North Carolina, agreed to pay $11.7 million (£7.3 million) for the 97 stores.

In July, when Bonus filed for Chapter 11, Baugur announced its intention to concentrate on growth in the Nordic countries and the UK. A spokesman for Baugur said: 'All in all, this is a better result than we thought to begin with.'

He said most of the $30 million to $35 million (£18.8 million to£21.9 million) incurred from exiting the business had already been recorded, and the remainder would be accounted for in the present half.

Variety Wholesalers will also take on 28 of the 239 stores. About 100 of these remaining outlets face closure and the rest have been taken by retailers including Dollar General and Family Dollar.

Baugur had a 65 per cent stake in the Bonus Stores business, which included Bill's Dollar and Bonus Dollar stores, across 12 states.

Other investors in the business included the Kaupthing Bank in Iceland and several private shareholders.

The spokesman said Baugur was 'unlikely' to see any of the proceeds of the sale, with cash going to pay creditors, all of which are suppliers.

Variety will also pay for certain stock that is in the former Bonus Stores supply chain.