Morrisons 'set for £1bn store sell-off'

From the archive, first published Monday 26th Mar 2007.

Supermarket chain Morrisons is said to be considering selling up to £1 billion worth of stores in a bid to defend itself from potential private equity takeover approaches.

The Bradford-based group is reported to be in discussions with property tycoons Sol and Eddie Zakay over a 26-site deal, according to a national newspaper.

It is believed the stores at stake are not part of Morrisons' core property portfolio.

Chairman Sir Ken Morrison is understood to be adamant the group should not sell off its central property interests, but the group has reportedly signalled it would be prepared to tap into its extensive portfolio as part of a bid defence strategy.

The possible property deal comes as Morrisons chief executive Marc Bolland leads a group-wide overhaul set to see the traditional black and yellow logo updated and its advertising slogan of more than 30 years ditched.

The £450 million makeover was announced earlier this month to freshen up its image and help put its recent problems behind it.

The group announced a profit before tax of £331 million in the year to February 4, up from just £54 million the previous year.

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