Sainsbury's sells Argos to private equity consortium for £120m

Published Jul 31, 06:38 AM UTC

Sainsbury's has announced it will sell its long-struggling catalogue retailer Argos to a private equity-backed consortium for £120 million. The supermarket giant acquired Argos a decade ago, but the retailer has consistently dragged on profits, fueling speculation of a sale. The consortium is led by On the Beach chairman Richard Pennycook and former Morrisons boss Trevor Strain, with backing from private equity firm True Capital. Sainsbury's CEO Simon Roberts stated that the sale will allow the company to focus all resources and investment on its core food business, which has been rebuilt, aiming for higher cash generation and healthier margins. The deal marks a strategic shift for Sainsbury's as it exits the general merchandise retail space.