Tesco’s new chief executive Dave Lewis has put its loss-making video-streaming business Blinkbox up for sale.

According to The Times, Lewis is reviewing all options for the business, including selling it or closing it if a buyer could not be found.

Lewis is understood to have decided the business is not core and is a distraction, and is thought to have told senior Blinkbox staff when he visited the offices in London on Friday.

Blinkbox was a key part of former chief executive Phil Clarke’s strategy. He bought it in 2011 and championed it, especially with the launch of its tablet Hudl.

Michael Comish, founder of Blinkbox, who was promoted to group digital director of Tesco in 2013, is expected to remain with the retailer.

Comish was at World Retail Congress yesterday, saying that it was no longer possible for “one general” to command military-style absolute power over an entire chain.