Business

Tesco sells Euphorium bakery business

Euphorium bakery Image copyright Tesco

Tesco is selling its Euphorium bakeries as part of a plan by chief executive Dave Lewis to turn around the supermarket's fortunes.

Tesco has already sold Dobbies Garden Centres, restaurant chain Giraffe and Harris + Hoole coffee shops, among other businesses.

The coffee shop firm Soho Coffee will buy Euphorium's high street stores and Islington factory.

Samworth Brothers will take over its Weybridge factory.

In-store Euphorium's bakeries will now be run by Tesco, which said it will be offering bakery staff the opportunity to transfer to the supermarket.

A Tesco spokesperson said: "We know how important a great bakery offer is to our customers, and this agreement will mean we can continue to serve shoppers with great quality Tesco bakery products."

Tesco and its big rivals Sainsbury's, Asda and Morrisons have all come under pressure from German discounters Aldi and Lidl, which have attracted customers with consistently low prices.

Financial details of the deal were not given.

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