Thursday 31 March 2016 6:34 pm

Tesco prepares to sell off restaurant chain Giraffe

Tesco is preparing for another disposal and sounding out potential buyers for restaurant business Giraffe.

The supermarket bought the chain in 2013 for £49m, with plans to open Giraffe branches beside its stores. At the time, Tesco said the deal was an "opportunity to develop some of the space in our larger stores to create retail destinations that offer customers even more choice".

However, the company has approached private equity firms and other possible bidders ahead of a potential sale, according to Sky News.

Last year, the company agreed the sale of its South Korean operation Homeplus for £4.2bn in a deal chief executive Dave Lewis said would allow Tesco "to make significant progress on our strategic priority of protecting and strengthening our balance sheet".

And in January 2015, Tesco sold its music streaming service Blinkbox at a loss.

Another attempted disposal however did not reach a successful conclusion – the proposed sale of Dunnhumby, the marketing company behind Tesco's Clubcard, was called off after failing to attract suitable offers.

Tesco and Giraffe have been contacted for comment.