Disney is considering selling off its 60 UK high street stores, the US entertainment giant confirmed today.
The move is part of a wider plan which could see the sale of 106 Disney Stores across Europe and 522 in North America as it struggles to tackle the effects of weakness in the retail sector.
The group has already slashed its number of shops in North America by a quarter and sold its Japanese outlets to Oriental Land Co, the company which operates the Tokyo branch of Disneyland.
But earlier this month Disney reported that its consumer products division had seen revenues slide 14% to $500m (£306m) in the three months to 31 March because of the soft retail market in North America.
While Disney did not reveal any immediate plans to close stores in the UK, a statement from the company added that further closures in North America were on the cards as it prepares the chain for possible sale.
Any sell-off would see a retailing specialist continue to operate the brand and pay Disney a royalty, as is already the case in Japan.
Andy Mooney, chairman of Disney’s consumer products operation said: “The Walt Disney Company is a global licensing leader committed to the growth of this business.
“We successfully extended this licensing strategy with the recent sale of the Disney Stores in Japan, and believe this is an attractive option for the Disney Stores in North America and Europe as well.”
The company said that Peter Whitford, president of the Disney Stores chain, had resigned ahead of the overhaul.
As well as the 60 stores in the UK, its other European branches are in France, Spain and Italy.
References: EGi News 23/05/03
