Tesco Plc (LON:TSCO) has revealed the latest steps in its reshaping plans, with the sale of the Giraffe restaurant chain.
The supermarket group agreed the sale with Boparan Restaurants Holdings which also owns fish ‘n’ chips chain Harry Ramsdens as well as other food interests, such including Goodfella’s pizza, Fox’s Biscuits and poultry suppliers.
Tesco bought the Giraffe business for £49mln three years ago, the sale fee was not disclosed.
It comes as Dave Lewis, who joined as Tesco chief executive in 2014, continues to reshape the bloated grocer’s business interests.
In a statement, Lewis said: "As we stabilise the business in the UK, we continue to focus on where we can best serve the needs of our customers, while ensuring our business remains sustainable for the long-term.”
Tesco also announced the sale of its 95.5% stake in Kipa, its Turkish supermarket chain. The deal is with Turkish retailer Migros, and it is expected to net £30mln of cash to Tesco as well as reduce debt by around £100mln.
Jasper Lawler, analyst at CMC Markets, in a note said: “The disposal of Giraffe was thought to be off the table, so the apparent change of heart suggests a level of desperation.
“CEO Davis Lewis is obviously still keen to add to the ‘price war chest’ as Tesco arms up to take on discounters Aldi and Lidl.”