Domino’s to sell off struggling Norway interests

PIZZA delivery chain Domino’s UK has agreed to offload its loss-making Norwegian arm as it pulls out of under-pressure international markets.

The group announced a deal to sell its entire 71 per cent stake in the Norway business, by paying up to £7 million in cash to existing minority shareholders.

Domino’s will also fund the division’s losses until completion of the sale, which is expected by the end of May, as well as a £500,000 marketing campaign.

The firm revealed last October it plans to beat a retreat from foreign markets to focus on its core UK and Ireland business.

Norway was first on the sale block as it has been the hardest-hit overseas division, with Domino’s recently confirming the arm is suffering “significant” losses.

The division slumped to a £6.6m operating loss in 2018, while Domino’s warned last week that the wider international arm is expected to see full-year operating losses of around £20m for 2019.

It also cautioned over writedowns of up to

£40m on the overseas business.

With the Norway deal under its belt, Domino’s said it will now turn its attention to offloading businesses in Sweden, Switzerland, and Iceland.

Outgoing chief executive David Wild said: “This transaction is positive for all stakeholders and also provides Domino’s Pizza Group with a clean exit from Norway following operating losses and high levels of capital expenditure over a number of years.

“The new owners have exciting plans for the business and importantly, the Domino’s brand will retain its presence in Norway.”

As part of the Norway deal, the minority shareholders in the business will transfer all of their shares in Domino’s Sweden to the UK group, smoothing the path for a sale of that division.