The new owners of Somerfield are reportedly looking to offload the loss-making Kwik Save chain. According to a report in UK newspaper The Daily Telegraph, talks concerning the sale are underway with a number of interested parties.
Somerfield was bought last year by a consortium of investors, including property tycoon Robert Tchenguiz, private equity firm Apax and investment bank Barclays Capital, for GBP1.1m. Since then, a number of changes have been made to the retail chain’s operations, including a review of ‘underperforming and unprofitable’ product lines.
According to the report, interested parties in a potential Kwik Save sale include Icelandic retail group Baugur and European discount chains Aldi, Netto and Lidl.
Baugur was in the race to acquire Somerfield last year, until fraud allegations were were brought against its chief executive, Jon Asgeir Johannesson. He was later cleared of most of the allegations.
A spokesperson for Somerfield said that the company does not comment on industry speculation.