Sainsbury’s has announced it is selling Argos, but has reassured customers and staff that it will be “business as usual”, with no expected job losses or store closures.
The supermarket giant said the sale will allow it to focus on its core grocery business, while Argos continues to operate under its new owner.
The deal with Swift Partners, whose shareholders include former Co-op Group chief executive Richard Pennycook, is expected to generate at least £120 million in cash for Sainsbury’s.
Sainsbury’s chief executive Simon Roberts said the retailer had transformed Argos into a leading multichannel business with millions of customers and thousands of employees.
He said the company had carefully considered the best long-term future for Argos, adding that Swift Partners brings the retail experience, technology expertise and investment needed to continue growing the brand.
Roberts also praised Argos staff for their dedication and sought to reassure employees, customers and suppliers that the business will continue operating as normal following the sale.
This breaking news story is being updated and more details will be published shortly.