The retailer said that restrictions on promotional activity and a competitive property market that prevented the business from gaining scale, were behind the decision. The company has entered a consultation period with staff.
Pali International analyst Nick Bubb welcomed the move, estimating that PC City in France lost just under£14 million in 2005/2006 on sales of about£79 million. 'The more that management can do to resolve other problems - like Italy - and focus on core businesses like PC World and Elkjop, the more the shares will regain lost ground,' he said.
DSGi will retain a presence in France through its Pixmania e-commerce business, which it bought last year.