Subject to receipt of necessary consents, Shoppers Stop shall divest 51 percent stake (expected to be completed within 15 days) and another 39 percent in the next 12 months.
Shoppers Stop has closed the sale of a controlling stake of its 100 percent subsidiary, Crossword Bookstores Limited to Pune-based Agarwal Business House.
The business of Crossword Bookstores is valued at Rs.41.6 crore. Under the agreement, ABH will take over all the assets and brand. Any liabilities will be adjusted for arriving at the final consideration.
The sale of the Crossword Bookstores is consistent with the company's strategic plans which are to focus on its core business and expand its strategic pillars viz, First Citizen, private labels, beauty, and most importantly, its omnichannel business, which has grown more than 3 times in the last one year.
At the board meeting of the company held on August 31, 2021, the board has approved the transaction. Subject to receipt of necessary consents, Shoppers Stop shall divest 51 percent stake (expected to be completed within 15 days) and another 39 percent in the next 12 months.
Commenting on the sale, Venu Nair, Managing Director and Chief Executive Officer of the company said, “We are pleased to continue the business transformation we set out to accomplish from last March, and selling the books’ business is an important part of that strategy. This represents another step in our progress to elevate Shoppers Stop to a customer-focused, omnichannel retailer, to enable us to deliver on the promises we make to our customers and shareholders. Most importantly, we are selling Crossword Bookstores to our franchisee ABH, who has been in this business for more than two decades and are extremely passionate about the book business. We are extremely confident ABH will grow the book business and take it to the next level. I am very thrilled about this deal, as it is a win-win for both Shoppers Stop and ABH.”
Aakash Gupta, Owner, ABH said, “We are very excited about the beginning of a new journey for this iconic brand. Crossword 2.0 is about focusing on readers and improving the overall customer experience. We are planning to infuse a significant amount for renovation, expansion, and the new omni journey.”