Belgium's Delhaize Group sells business in Bulgaria

Delhaize operated 54 own and franchised supermarkets and convenience stores in Bulgaria.

Delhaize Group, a Belgian food retailer with international presence, has signed an agreement with Bulgaria newly-registered company AP Mart on the sale of its local operations.

“The Group expects to recognize an impairment loss of approximately 10 million euro and going forward will classify these operations as assets held for sale and discontinued operations,” Delhaize said in a financial report for 2013.

The transaction is expected to close in the second quarter of 2014 since it is a subject to approval from local regulators.

The company does not disclose the value of the deal.

Delhaize operates in Bulgaria under the brand Piccadilly and has , most of which are located in the capital Sofia. Some of the units are run by franchise partners.

Delhaize acquired the Piccadilly stores in 2011 when it took over Serbian retailer Delta Maxi Group, which at the time operated 450 stores in five countries in Southeastern Europe.

The company sold its operations in Montenegro and Albania in 2013.

Delhaize Group said its revenues grew 2.6% to 21.1 billion euro in 2013. A year earlier, the company posted a net profit of 104 million euro.