Home shopping group Flying Brands is to sell its gifts division to Interflora.
The £2.4m deal for the division, which comprises the Flying Flowers and Flowers Direct along with a small number of florists trading under Drake Algar, will provide working capital for the rest of its business.
Its gifts division made an operating loss of £0.8m in the year ending 31 December, 2010. It also made a £0.8m operating loss in its half year to July 1, 2011.
The book value of the assets to be sold was £3.2 million at 1 July, 2011. The deal is subject to both shareholder and the OFT’s approval.
Following the disposal, the focus of the group will be on its Gardening Direct and Garden Bird Supplies businesses.
Flying Brands carried out a refinancing in November extending its current overdraft facility with Barclays Wealth from £800,000 to £1.475m.