Former Asda boss Allan Leighton has joined multichannel CD, DVD and games retailer Entertainment Magpie - which trades through the MusicMagpie.co.uk site - as chairman following investment in the business by private equity group LDC.
MusicMagpie, which buys goods from consumers and sells them on through third parties, intends to expand in the UK and internationally following the deal, the value of which was not disclosed.
The retailer, founded by former Music Zone chief executive Steve Oliver, already caters for customers in 80 countries but aims to grab a bigger share of the so-called “replay entertainment” market, estimated to be worth £1bn annually and forecast to grow by 10% a year for the next three years.
MusicMagpie is forecast to generate EBIT this year of about £4m on sales of £30m.
Oliver said: “The next phase of our international expansion has already begun with the launch of our German website, which is showing some very encouraging results.
“With the backing of LDC and the contribution to the team by Allan Leighton, we hope to further develop the MusicMagpie.co.uk brand and our strong trading performance.”
Leighton said: “MusicMagpie’s bespoke IT systems, coupled with its strong links to online global output channel operators, gives it a unique foundation from which to further develop into new territories and to maximise opportunities closer to home.”
LDC investment director Jonathan Bell said: “This transaction highlights our commitment to supporting ambitious UK businesses in achieving their growth potential in the UK and overseas.”