The Co-operative Group sells former Somerfield food stores to Hilco, the turnaround specialist behind HMV
The Co-operative has sold around 90 food stores it inherited from its £1.6bn takeover of Somerfield eight years ago to Hilco, the buyout company behind HMV.
The mutual said the sale to The Food Retailer Group, a subsidiary of Hilco, included 36 trading stores and an additional non-core portfolio of 50 properties, including offices and shops, that are no longer trading.
It is understood to have offered a dowry of £40m for the non-core portfolio, although the group said it will still make a profit after the disposal, which will complete in July.
The 36 stores will continue to trade under Hilco's ownership, with all 920 staff keeping their jobs.
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The Co-op has been revamping its 2,800-strong estate and selling off larger unwanted stores to focus on expanding its more profitable convenience business.
Last month, the group hired bankers at Rothschild to sell around 300 stores. However, it is still continuing to open more sites, with plans to open around 100 stores and refit 150 this year.
Steve Murrells, chief executive of Co-op Food, said: “The Co-op Food business is moving forwards with a clear purpose and momentum, so we can deliver a compelling, convenient and co-operative shopping experience for millions of shoppers each day.
"It is essential that we have a proactive property programme in place to support our long-term growth strategy and this sale aligns with that approach."