Argos chief in Sainsbury snub

ARGOs’s future has become more unclear after Home Retail Group’s boss shunned interest from sainsbury’s, just as the deal was backed by the supermarket’s former chairman.

John Walden, chief executive of Home Retail Group, said the approach made by sainsbury’s in November to buy the group had been ‘opportunistic’.

The boss said his efforts to improve the fortunes of Argos, which reported a 2.2pc fall in sales over the festive period, were ‘not finished by a long shot’.

He told the sunday Times newspaper ‘we didn’t pursue this strategy thinking we needed partners’.

Mike Coupe, sainsbury’s boss, said he envisioned the two retailers being ‘integrated’ if a deal could be agreed following its £1.2bn bid. With 40pc of Argos’s leases due to expire by 2020, this could see outlets of Argos opening within the supermarket’s stores.

Despite his apparent reluctance for a takeover Walden did not rule out a tie-up altogether, adding: ‘If there’s a way for us to realise this in a faster way with a partner or multiple partners, that’s certainly something we and the board would consider.’

His comments came as Lord sainsbury, a former chairman of the chain who still controls around 3pc of the shares, announced his support for buying Home Retail Group.

Last week it emerged Homebase, the DIY chain also owned by Home Retail Group, is set to be sold to Australian group Wesfarmers for £350m, and to be rebranded as Bunnings.

The separation of Homebase is said to pave the way for sainsbury’s to buy Argos, as the grocer has shown no interest in taking on the home improvements business.