Sainsbury’s agrees to sell its Argos business to Swift Partners for at least £120 million, according to multiple reports. The transaction involves the Argos general merchandise chain, including Argos standalone stores and outlets located within Sainsbury’s supermarkets, as well as related sales and collection channels. Several outlets describe Swift Partners as a newly formed company created specifically for the acquisition. Bloomberg and Retail Gazette identify Swift Partners’ backers as including former Co-op boss Richard Pennycook, former Morrisons finance chief Trevor Strain, and True Capital co-founder Matt Truman, though other reports focus primarily on Swift Partners as the buyer.
The Financial Times says the sale represents the retailer’s second attempt to offload the general merchandise operation as Sainsbury’s concentrates on its core food business. The Daily Mail reports the cash proceeds are at least £120 million, with £70 million paid upfront when the deal completes, which is expected in February next year. Retail Gazette also notes labour concerns, reporting that Usdaw vows to protect jobs.
