Best Buy will sell Chinese Five Star business

Best Buy Co., Inc. entered into an agreement for the sale of its Five Star business to the Jiayuan Group, a China-based real estate firm. This sale does not affect Best Buy’s private label operations in China.

“The sale of Five Star does not suggest any similar action in Canada or Mexico. Instead, it allows us to focus even more on our North American business. We will also continue to invest in and grow our China-based private label operations, with brand names that include Dynex, Insignia, Modal, Platinum and Rocketfish,” said Hubert Joly, president and chief executive officer of Best Buy.

Best Buy entered the Chinese retail market by purchasing a majority interest in Jiangsu Five Star in 2006 and now operates 184 stores in China, all under the Five Star brand. The transaction is expected to close in the first quarter of fiscal 2016.