Disney is to sell 106 stores across Europe, blaming the weakening of the retail sector.
The group has already slashed its shops in North America by a quarter and plans to sell a further 522. It operates 60 stores across the UK, with other European branches in France, Spain and Italy.
The move follows a 14% global slide in revenues to $500m in the three months to 31 March.
It is intended for every disposal to go to a retail specialist that would continue to operate the brand and pay royalties to Disney. This was the model adopted in Japan, where the stores were sold to Oriental Land Co, the company which operates the Tokyo branch of Disneyland.
Peter Whitford, president of the Disney Stores chain, has resigned ahead of the overhaul.
