19 April 2000
Somerfield drops Kwik Save sale

SOMERFIELD has announced that it has dropped plans to sell off its Kwik Save stores.

The food retailer has not received high enough bids from venture capitalists interested in taking over the 350 Kwik Save outlets, reports the Financial Times.

New Somerfield chief executive Alan Smith admitted that keeping the stores, which have a current book value of 335 million, would more than wipe out the 130m profit made on the sale of 46 Somerfield stores.

Somerfield has struggled since its merger with Kwik Save two years ago.