Tesco has confirmed it will sell its Giraffe restaurant chain to British restaurateur and food empire giant Ranjit Singh Boparan, the owner of Harry Ramsden's for an undisclosed fee.
The supermarket giant also announced today it will offload its Turkish supermarket arm, Kipa in a deal which reduces the company's debt burden by £110m.
Tesco bought Giraffe for around £49m back in 2013 but has not been able to help the restaurant become profitable. The supermarket will take a hit on that investment, as chief executive Dave Lewis is believed to have waved through the sale to Boparan Holdings at a slight write-down.
Read more: The great Tesco sell-off
Boparan owns the 2 Sisters food group and is rumoured to be worth around £1.35bn.
The sale is the latest in a string of disposals since Dave Lewis took charge of the struggling retailer in 2014. In the last 18 months the supermarket posted one of the biggest ever annual losses in corporate history, of £6.4bn in the 2014/15 financial year, and was also placed under investigation by the Serious Fraud Office for overstating profits by £263m.
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.
Think Tesco may be sticking its neck out with the Giraffe sale..— Jasper Lawler (@jasperlawler) June 10, 2016
"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 cafes and other providers."