Nordic Business Report-December 6, 2006-AB Lindex plans to divest German stores (C)1994-2006 M2 COMMUNICATIONS LTD http://www.m2.com Swedish fashion chain AB Lindex announced on Wednesday (6 December) that it has decided to divest its operations in Germany. Lindex has 23 stores with 135 full-time employees in Germany. The business reported sales of SEK280m in the financial year 2005/2006, but posted a loss of SEK50m. "The operation in Germany has not achieved the targets set for it and we are now of the opinion that the return on new investments has a significantly greater potential in Eastern Europe. Our ventures in the Baltic States have been extremely successful and we will open stores in the Czech Republic during the next financial year," said Goran Bille, president and CEO of Lindex. Lindex said that it expects to complete the sale of the German stores during the 2006/2007 financial year. Lindex, headquartered in Gothenburg in Sweden, sells lingerie, ladies wear, childrens clothing and cosmetics. The company has some 350 stores in Sweden, Norway, Finland, Germany, Estonia and Latvia. Lindex is listed on the Nordic Exchange in Stockholm. One British pound (GBP) is worth approximately 13.49 Swedish kronor (SEK). ((Comments on this story may be sent to [email protected]))