PC World parent awaits FTSE 100 relegation
Vista to blame? 'Absolutely not'
Retail mammoth DSG International (DSGi) looks set to spectacularly tumble out of the FTSE 100 today losing its status as one of the biggest PLCs in the UK.
The firm, which owns Dixons, Currys, and PC World, admitted last month that it had overstocked laptops that failed to subsequently fly off the shelves.
It also recently pointed the finger at Microsoft and the sluggish take-up of Vista for its poor sales performance at PC World.
Perhaps given all its warnings about waning profits it should come as little surprise to see the retail giants' fall from grace alongside more obvious FTSE 100 drop-outs, such as troubled bank Northern Rock.
A DSGi spokesman told The Register that the firm's imminent departure from the list was due to a number of factors including the overstocking of laptops and issues in the Italian segment of its empire.
However, when pressed about whether or not poor sales of Vista at PC World could also be attributed to the embarrassing tumble, he said "absolutely not".
The firm also said in a statement that new CEO John Browett would focus on pushing up earnings at DSGi as he attempts to turn fortunes around for the group.
But today could go down as a significant and unwelcome date in the history of DSGi, which can almost certainly expect to be hit by an unsettling long-term decrease in its share price.
Indeed, it has already fallen by more than three per cent on the London Stock Exchange to 110.10 pence per share on the previous close of 113.78 pence as it awaits confirmation of its highly likely exit from the list.
According to MyFinances.co.uk, the City rejig is the biggest since 2001 and the dotcom bubble burst with a total of seven companies set to slide out of the FTSE 100 list today. ®