Moneycontrol PRO

Shoppers Stop sells Crossword Bookstores to its franchisee Agarwal Business House

The departmental store chain is looking to exit its non-core businesses and plans to focus on expanding its core business.

August 31, 2021 / 07:29 PM IST
Shoppers Stop of late is eying an exit from its non-core business which would enable it to expand its core business

Shoppers Stop of late is eying an exit from its non-core business which would enable it to expand its core business

Shoppers Stop sold wholly owned subsidiary Crossword Bookstores to its Pune-based franchisee Agarwal Business House at a gross business valuation of Rs 41.62 crore, the company informed on August 31.

“Shoppers Stop has closed the sale of a controlling stake of its 100 percent subsidiary, Crossword Bookstores Limited to M/s. Dinesh Gupta, Aakash Gupta and Family (Owners of Agarwal Business House), Pune, pursuant to the share purchase agreement between Shoppers Stop and ABH signed on August 31, 2021,” the company said.

“Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration,” it added.

At the meeting of the company held on August 31, the board approved the transaction. Subject to receipt of necessary consents, Shoppers Stop shall divest 51 percent stake (expected to be completed within 15 days) and another 39 percent in the next 12 months.

Shoppers Stop of late is eying an exit from its non-core business which would enable it to expand its core business and strategic growth pillars -- First Citizen, private labels, beauty and omnichannel business. The sale of Crossword Bookstores is in line with this strategy.

Close
Commenting on the sale, Venu Nair, Managing Director and Chief Executive Officer of the company said, “We are pleased to continue the business transformation we set out to accomplish from last March and selling the books’ business is an important part of that strategy. This represents another step in our progress to elevate Shoppers Stop to a customer-focused, omnichannel retailer, to enable us to deliver on the promises we make to our customers and shareholders. Most importantly, we are selling Crossword Bookstores to our franchisee ABH, who has been in this business for more than two decades and are extremely passionate about the book business. We are extremely confident ABH will grow the book business and take it to the next level. I am very thrilled about this deal, as it is a win-win for both Shoppers Stop and ABH.”
Moneycontrol News
first published: Aug 31, 2021 07:29 pm
Sections
ISO 27001 - BSI Assurance Mark