Tesco has confirmed plans to sell its Giraffe restaurant chain and its controlling stake in Turkish grocery business Kipa.
In a filing this morning, Tesco said it intends to sell Giraffe to the owner of Harry Ramsden’s restaurants, Boparan. The deal includes 54 standalone restaurants, 12 of which are franchises and three within Tesco stores.
Boss Dave Lewis has been streamlining the retailer’s operations as it recovers from 2014’s accounting scandal and deals with the fierce price war in UK grocery.
Last September Tesco sold its South Korean business, Homeplus, for £4.2bn. It is also rumoured to be lining up sales of its Dobbies garden centre business and Harris & Hoole coffee chain.
Lewis said: “As we stabilise the business in the UK, we continue to focus on where we can best serve the needs of our customers, while ensuring our business remains sustainable for the long-term.”
He added: “Giraffe is a much loved brand, and while casual dining remains an important part of the shopping trip for many of our customers, we will continue to meet these needs through our Tesco Cafés and other providers.”
Tesco’s Turkish business, Kipa, is being sold to rival Migros. The sale of its 95.5% controlling stake will raise around £30m.
Lewis added: “The sale of Kipa reflects the particular strategic challenge we have faced in Turkey as a small regional player in a highly competitive market.
“It removes the need for the sustained investment required to enable the business to compete independently, allowing us to focus on improving profitability in Central Europe and continuing to grow our businesses in South East Asia.”