Tesco, which is set to update the City tomorrow, is understood to have appointed advisors to oversee the sale of its non-core assets, including garden centre chain Dobbies, Giraffe and Harris + Hoole.
Reports suggest the company has appointed Greenhill, the boutique advisory firm, to advise on the sale of the businesses, whilst it also plans close its bakery business Euphorium.
Former owner Luke Johnson, the Casual Dining Group and Duke Street Capital – the backer of Wagamama, have all already been put forward as possible suitors for Giraffe, which Tesco acquired for £48.5m.
At the same time, Caffe Nero is believed to be interested in acquiring more of the high street-located Harris + Hoole sites , after securing three units late last year.
The move to sell of its non-core assets is expected to help the retail chain reduce losses and focus on its core supermarket business.
Dobbies was acquired by Tesco in 2008 and currently has a chain of 35 garden centres across the country and many of them are attached to the company’s supermarket.
Euphorium currently operates five high street locations and more than 60 concession units.
The majority of the non-core businesses were acquired by Philip Clarke, the former chief executive of Tesco, with the main reasoning behind the deals being to help the supermarket chain diversify from its retail business and utilise excess space at some of its stores.