Livraria Cultura purchases Fnac

Sao Paulo-the music and books retailer Fnac Darty yesterday announced agreement to sell operations in Brazil to the Livraria Cultura. The Frenchwoman was already struggling to monetize your operation in the country, and sought a partner to continue acting on Brazilian soil.
Fnac Darty said license the brand to the new company Fnac and will hold a recapitalisation to help the company improve your market position. The French group, however, did not reveal the size of the recapitalisation, or provided other details about the agreement with Livraria Cultura.
Sought after in Brazil, both companies expressed their views on the matter immediately. The completion of the sale must occur in the next few weeks.
The brazilian operation of Fnac includes 12 stores in seven States of the country and e-commerce activities. The company operates in Brazil since 1999, employing currently about 550 employees. According to the French group, the operations in Brazil are responsible for less than 2% of the Group''s annual sales of 7.4 billion euros.
The brazilian unit of the Fnac was among several retail companies of appliances and electronics on sale after the business model of large stores and low inventory turnover has become increasingly untenable in light of the economic recession.
The Livraria Cultura was founded about 70 years and has 18 stores and e-commerce operation. "The Union between the two groups will create values and synergies, sharing similar cultures and allow the Livraria Cultura diversify their businesses," said the company in a statement.