Supermarket Morrisons has appointed London-based bank Rothschild to sell its online division Kiddicare.
The business was acquired three years ago for £70 million but is being ejected as part of a massive overhaul of the Morrisons business. A £163 million write-down on the value of the Kiddicare earlier this month contributed to a £176 million loss at the chain.
Privte equity buyers and other retailers are thought to be interested to look at the possibility of acquiring the business. But some reports, including the Financial Times, have suggested that the business did not live up to expectations.
Kiddicare and Morrisons' investment in New York delivery service Frssh Direct were originally intended to form the basis of the supermarket's push into selling food online.
But last year Morrisons decided to partner instead with Ocado which it believed would provide it with a faster more comprehensive strategy.
The tie up with Ocado was announced in May last year and Kiddicare founder Scott Weavers Wright, who had been reportedly working on the launch of the food delivery project, left a month later.
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