DSGi is believed to be poised to sell its Electro World stores in Central Europe to Slovakia-based consumer electronics retailer NAY.

DSGi’s 32 stores in Poland, the Czech Republic and Hungary are likely to be sold in May, according to Polish web site Interia.pl.

DSGi chief executive John Browett is due to update on the retail group’s future in the region at the end of its financial year.

The decision follows the closure of 27 stores in the Nordic region, as revealed by Retail Week last week.

The news came as the retailer was today forced to react to speculation that it would undergo a rights issue to raise several hundred million pounds to accelerate its three-year turnaround plan

According to DSGi’s website, the retailer has 17 Electro World stores in the Czech Republic and a 28,000 sq ft Central Europe distribution centre outside Brno. It also has seven stores in Poland and eight in Hungary.

In a statement DSGi told Retail Week: “We confirmed in our May 2008 renewal and transformation announcement that a number of our businesses - including Central Europe - were under strategic review.

“These reviews are progressing well, but as we have consistently stated, we will be providing an update at the end of the financial year. Further than that we will not comment on rumour and speculation.”

NAY operates 19 large-scale electronics stores in 17 cities throughout Slovakia where it has 23 per cent market share, making it the leader in the region, according to its website.