The Co-op Group, which acquired Somerfield Store for £1.5bn, has decided to break up the store’s portfolio. It has appointed investment bank Credit Suisse to manage the sale of its 107 stores. The Credit Suisse bankers have invited preliminary proposals from bidders for submission on or before August 22. The sale involves freehold as well as leasehold properties.

The Co-op group has put 10 London stores on sale including Camberwell, Tooting and Kentish Town. Credit Suisse bankers, in their sales memorandum, have described this auction as a unique opportunity for acquiring national prominence through acquisition of a significant portfolio of retail grocery stores. The memorandum further mentioned that all transactions would be affected with the sale of stores, including elements of stock, fittings and fixtures.

The Co-op Group spokesman refused to comment on details of the memorandum, but added the Group has approached a number of prospective bidders who showed interest in the deal.

Co-op is seeking involvement of the Office of Fair Trading to take care of competition issues. It is not yet known which major supermarket players are likely to show interest in buying these stores. Speculation is rife that WM Morrison, J Sainsbury and Asda might stake a claim as part of their expansion plans.