Tesco to sell Giraffe to West Midlands entrepreneur

Tesco to sell Giraffe to West Midlands entrepreneur

West Midlands food entrepreneur Ranjit Boparan, owner of West Bromwich - based 2 Sisters Food Group, is to acquire the Giraffe restaurant chain from Tesco.

The retail giant confirmed it will sell the chain to Boparan, whose company is the country’s largest chicken supplier.

The supermarket is also set to offload its Turkish operations as it continues to sell off underperforming assets.

The disposals represent a continued shift in strategy under chief executive Dave Lewis, who is attempting to turn Tesco around after a period of decline under previous management.

Boparan, the boss of Fox's Biscuits and owner of Goodfella's pizza and Harry Ramsdens, will pick up 54 standalone Giraffe restaurants, three of which are within Tesco stores.

The sale of Tesco's Turkish operation Kipa to Migros will net the supermarket £30m.

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.

"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."

 

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