Metro to sell Adler stores

Metro AG. said its Adler fashion stores unit that it has put up for sale will close up to 20 loss-making stores in Germany and Austria by end-2009 and will cut 525 jobs.

The German retail giant in a statement
said up to 370 jobs will be cut as a result of the shop's closures,
with the remaining jobs being cut in the company's logistics
operations and administration.
Metro said it wrote down the value of
Adler, resulting in 312 million euros of non-cash effective costs as
well as additional expenses of 63 million euros in the second
quarter.
The company said it aims to sell off
the unit quickly 'against the backdrop of a weak first-half
development in a very difficult clothing market environment'.
According to unconfirmed reports in the
Austrian press, Fressnapf, INTERSPAR, dm and Tengelmann-owned KiK are
interesting in acquiring the local Adler store network.