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Metro to sell Cash & Carry business in Denmark to Euro Cater

RBR Staff Writer Published 13 October 2014

German department store operator Metro has signed an agreement to sell parts of its Cash & Carry Denmark business to Euro Cater, as a part of its plan to exit the country.

Metro

The fodd service company Euro Cater will take over Metro's stores in Glostrup and Aarhus and integrate them from December into its Danish distribution network.

This is said to safeguard about 300 jobs in the two stores.

The transaction, subject to the approval of the Danish antitrust authorities, is expected to be closed by the end of November.

In addition, Metro Group will close the three wholesale stores in Denmark and exit the Danish market.

Effective 31 December 2014, the stores in Aalborg, Kolding and Copenhagen will be closed.

An agreement for the 400 employees in these stores and the headquarters of the Danish operations has been negotiated and agreed on with the employee representatives and the unions, the company said.

Metro noted that the Danish market is saturated and is not expected to offer satisfactory prospects for growth while Metro Cash & Carry with only five stores in the country does not reach the critical mass.

During the financial year 2012-13, the retailer generated sales of about €66bn. The company operates around 2,200 stores in 31 countries and has a headcount of around 250,000 employees.


Image: Metro has also decided to close its wholesale business in Denmark. Photo: courtesy of Metro AG.