CHS names the ditched divisions

Magnificent seven handed back - but some of the names are still under wraps

CHS Electronics has revealed the names of subsidiaries offloaded to improve its balance sheet. The US-based distributor told The Register it had handed back the following operations to their original owners: Memory Set and ARC Espana Cartera, both in Spain, and Arena Bilgisayar Sanayi ve Ticaret and Armada Bilgisayar in Turkey. Yesterday CHS announced it was shedding seven of its subsidiaries in Europe to cut outstanding debts and win back the confidence in the market. Richard Kaminsky, director of investor relations and assistant treasurer at CHS, today said the names of the other three subsidiaries could not be disclosed as negotiations were still ongoing. He said that of the three, two were in Latin America and one was in Europe. Kaminsky believed the cost-cutting measures would help put CHS back on track. "There are a number of things that we need to do. This is one step of several that need to be taken," he said. "First, there is the balance sheet matter to address via reducing earn-out liabilities. "The other concerns profitability issues – and the COO and his team are working very diligently in that regard." Kaminsky said the moves were part of the overall restructure announced by CHS in March, which included cutting 10 per cent of its staff and closing 25 warehouses. "Investors, vendors and lenders need to see a stronger balance sheet. This should move us in that direction," he said. ®

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