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By | John Oates 6th April 2009 11:22

Dixons cuts off Norse to right base

No word on cash rumours

Dixons shares jumped nearly 12 per cent today on news that it has started cutting its Nordic stores and is considering a rights issue to speed the rest of the restructure.

Dixons Store Group International confirmed that it is going ahead with plans to close stores in Sweden and Finland and rebrand its remaining outlets. But the firm refused to comment on rumours in the weekend papers that it was planning a share or rights issue to raise cash to accelerate the restructuring of other stores.

A spokesman for DSGi told the Register: "In line with our strategy to focus our portfolio on winning positions, we have entered into negotiations to close our PC City brand in Sweden and our Markantalo brand in Finland. All eight PC City stores in Sweden will close. 19 of the 23 Markantalo stores in Finland will close. The remaining four will be converted into Gigantti stores."

The company is also shedding 43 shops in Italy.

DSGi has been rejigging all its stores including PC World and Currys stores in the UK. It said in March that the new format stores brought in 15 and 50 per cent higher gross profits. The restructure will also see it end sales of white goods on the High Street in favour of higher margin digital goods.

The company told the London Stock Exchange this morning: "DSG international plc notes recent press speculation regarding a possible issue of new equity by the Company. DSGi regularly reviews its capital structure relative to its medium term operational and strategic plans. No final decision on any course of action has been taken." ®

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