Walmart's Mexico unit to sell apparel chain

Walmart's Mexican division Walmex is selling its apparel chain Suburbia to El Puerto De Liverpool for about 852 million US dollars. Walmex announced the news on Wednesday. Mexico is Walmart's largest market outside the USA.

The retail giant had announced intentions to sell Suburbia already in January of this year. Wal-Mart de Mexico y Centroamerica, as Walmex is officially known, will sell all 119 Suburbia stores and real estate, amounting to 15.7 billion pesos, approximately 852 million US dollars. There is also a pending debt of 1.4 billion pesos (77,000 US dollars).

As Walmex disclosed in a statement, the retailer will also receive an additional 3.3 billion pesos (180,000 US dollars) in items including declared dividends after closing the deal, bringing it to 19 billion pesos or 1.03 million US dollars overall.

Of the 119 stores, seven are fully owned, 78 are on property leased from third parties and 34 are operated alongside other Walmex stores. According to Liverpool, Suburbia will "broaden its business model and customer base as it seeks to expand in the clothing and footwear business".

Photo: via suburbia.com.mx