Tesco sells its garden centres and cafe chain

TESCO is preparing to offload under performing businesses in a bid to turn its fortunes around.

Britain’s largest supermarket, which reports its latest results tomorrow, is said to be considering selling Dobbies Garden Centres and coffee shop chain Harris & Hoole, and has appointed advisors at Greenhill.

Bakery firm Euphorium and family restaurant chain Giraffe could also be ditched as chief executive Dave Lewis attempts to focus the grocer on its core business.

The company was found to have a £326m black hole in its accounts in 2014. Tesco was accused of having ‘cooked the books’, prompting an investigation by the Serious Fraud Office.

Health business Nutricentre was closed in March, and data analytics company Dunnhumby came close to being auctioned off but failed to attract suitable offers. Lewis has disposed of Tesco’s South Korea operations for £4bn, as well as closing 53 unprofitable stores elsewhere. He has also cut prices across hundreds of lines.

Analysts expect Tesco to post profits of £447m for the year to the end of February, compared to the huge £6.4bn loss a year earlier.

Tesco said it does not comment on market speculation. Shares rose 1.55pc or 2.95p to 193.5p.