More than 1,000 jobs at risk as Carphone Warehouse announces plans to close loss-making UK electronics chain by the end of the year.
The move will see the 11 Best Buy-branded 'Big Box' style stores in the UK close by the end of the calendar year, with 1,100 employees facing the axe. However, Best Buy Europe said it is "confident" it will be able to relocate the Best Buy employees to positions within its other UK business.

Best Buy UK, a division of Best Buy Europe, was launched as a 50:50 joint venture between Carphone warehouse and US electronics firm Best Buy in 2008. The closure of the UK operation is designed to "eliminate the significant ongoing losses" within Best Buy Europe, said the firm after Best Buy UK has failed to make a profit since its inception.

The business incurred operating losses of £62m in the year ended March 31, 2011 and £47m in the six months to September 30, 2011. Carphone Warehouse anticipates further operating losses of between £25m and £30m through to the point the stores close, while the added cash costs of closure are expected to be in the region of £65 to £75m post-tax.

Carphone Warehouse and Best Buy initially planned to open 200 stores across the UK and Europe by 2013, with the first outlet opening on April 30, 2010. However, the roll-out was brought to a halt in June, in a bid to cut costs in the loss-making business.

Best Buys' 11 UK outlets are located in Liverpool, Derby, Bristol, Rotherham, Nottingham, Dudley, Thurrock, Southampton, Enfield, Croydon, Hayes. The Croydon branch fell victim to looters and was completely cleaned out during the riots in August this year.

Carphone Warehouse ceo Roger Taylor said of today's announcement: "The 11 Best Buy UK 'Big Box' stores have performed exceptionally at the level of customer satisfaction but they do not have the national reach to achieve scale and brand economies. Due to a lack of visibility of an acceptable rate of return on historical and future potential investment, we have decided against rolling out more 'Big Box' stores and we will be closing our existing stores, subject to consultation with our employees. Our immediate focus is our people and we are confident that the large majority will be offered alternative positions elsewhere in our UK businesses."

The focus now is on expanding the range of electronic goods available in Carphone Warehouse stores in the UK and Europe.