Carphone is not alone in experiencing tough High Street conditions
Carphone Warehouse is selling a half share in its retailing business to US firm Best Buy for £1.1bn.
The deal is intended to create a powerful new force in UK and European electronics and electrical retailing.
Reports suggest some of the war-chest may be used to buy the UK business of broadband firm Tiscali.
Best Buy is the world's largest consumer electronics retailer with 150,000 staff, annual sales of more than £20bn and a 20% US market share.
It operates from giant superstores, typically 40,000 sq ft in size, equivalent to a large British supermarket.
One of the main reasons for forming the joint venture with Carphone Warehouse is to bring these superstores to the UK and Europe, with the first ones scheduled to open in 2009, and branded as Best Buy.
However, existing Carphone Warehouse shops will not change their branding or format.
This transaction shows that not every retailer has descended into the kind of chronic depression that prevents them doing any kind of deal
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