Morrisons is said to be on the brink of a deal to sell struggling maternity wear outlet Kiddicare to turnaround investor Endless.
The likely sale, which has not yet been formalised, was reported by Sky News yesterday with the suggestion that an announcement could come as soon as the end of this week.
Kiddicare was bought by the retailer three years ago, for £70m, but has performed poorly since the purchase was agreed.
The supermarket accepted a £163m writedown on Kiddicare during the last financial year, describing its performance as “disappointing”.
Morrisons argued that since it had launched online food operations through Ocado, the “strategic rationale” for owning Kiddicare had been superceded and that it would look to sell the business this year.
Morrisons declined to comment on the reported negotiations.