Asda’s new owners consider selling George business
George may find a new owner
Asda’s new owners are said to be looking to spin-off the supermarket chain’s George fashion and homewares business.
Mohsin and Zuber Issa, together with investment funds managed by TDR Capital acquired Asda in a £6.8bn takeover from US giant Walmart, which retains a minority stake.
George is the second largest fashion retailer in the UK by volume but it is understood the Issa brothers do not regard it as being within their area of expertise. George was created by the founder of Next George Davies in 1990.
Other supermarket chains introduced their own discount fashion and childrenswear, Sainsbury’s launching Tu, Tesco creating F&F and Morrison’s bringing in Nutmeg.
According to The Times, the brothers would be more comfortable continuing with the George brand on a licensing basis to free up more space in stores.
The company has already introduced Accessorize into one store and has opened the first two compact B&Q stores inside its Sheffield and Dagenham stores during the quarter. It has extended its partnerships with musicMagpie, Claire’s Accessories and Decathlon.
The petrol station entrepreneurs and TDR Capital completed their takeover on 16 February and will take Asda’s petrol forecourt business into their own EG Group for £750m.