Deal comprises online and mail order business
The Local and Direct businesses of DVD and games retailer Choices UK have been bought by Findel’s Webb Group for an undisclosed sum.
Webb Group has bought the Choices UK wholesale packaged entertainment business, which comprises its online and mail order operation. The Local business supplies DVDs and games to off-licences and convenience stores.
Administrator PricewaterhouseCoopers (PwC) continues to operate 139 stores across the UK and is seeking a buyer for the retail business.
PwC joint administrator Nick Cropper said: “The sale provides a secure home for the Local and Direct businesses, allied with strong management experience and capability.
“Our next task is to sell the retail business of Choices UK. We have spoken with a number of interested parties and our priority now is to work hard to achieve a sale of the business as soon as possible.”
Webb Group managing director Bernard Kumeta said: “The acquisition of these businesses is directly in line with our strategy of further leveraging our core skills in brand management, product sourcing and fulfilment through targeted acquisitions. The Local and Direct businesses of Choices UK have strong prospects and are an excellent fit with our existing businesses. This transaction will take our run rate revenues to more than£100 million.”
PricewaterhouseCoopers has also appointed surveyor Edward Symmons to carry out valuations of Choices UK’s retail units, with a view to providing marketing and disposal advice for those not included in any sale as a going concern.