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The world's largest consumer electronics chain
didn't disclose financial terms of the sale of the 184-store
network, announced in a statement.
Best Buy has struggled to fend off Chinese rivals in a crowded
market, as other U.S. firms have complained that operating in
the country has become more of a challenge.
"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," Hubert Joly, Best Buy's president
and chief executive officer, said in the statement.
Joly added that Best Buy would continue to invest in its private
label operation in the country. Best Buy's China operations
accounted for around 4 percent of its sales in the most recent
financial year, ended Feb. 1.
Jiayuan Group did not immediately respond to requests for
comment.
Best Buy pulled out of the European market last year when it
sold its stake in Carphone Warehouse Group for less than half
its initial investment. At the time, many analysts suggested the
firm should also consider exiting China.
The deal, which is subject to regulatory approval, is expected
to close in the first quarter of fiscal 2016.
(Reporting by Adam Jourdan and SHANGHAI newsroom; Editing by
Kenneth Maxwell)
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