The electronics retail chain "M.Video-Eldorado" is in talks to be sold. The main contender for the purchase is Promsvyazbank (PSB), which is developing its own "SvyazON" chain based on the former retailer "Svyaznoy."
The estimated value of the deal is 300 billion rubles, although it may be higher due to brands and trademarks. PSB has audited the company, but no final decision has been made yet. The chain is experiencing financial difficulties: losses began in 2022, and for 2023 they amounted to 7.5 billion rubles with revenue of 433 billion rubles.
Experts believe that PSB may close up to 200 stores for optimization, due to high competition with marketplaces, debt burden and slowing revenue growth.
The chain also has debts to distributors, electronics manufacturers and creditor banks, including PSB. The potential buyer is likely to reorient the chain to sell domestic electronics to increase the utilization of Russian production facilities.
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