// Asda’s new owners could split off its clothing business
// The Issa brothers are reported to have considered range of strategies for the supermarket giant
// Asda’s owners could also sell off the alcohol arm of the business for a third party to run
The new owners of Asda may be looking into selling off the supermarket giant’s £3 billion clothing business, George, according to sources speaking to The Mail on Sunday.
Earlier this month billionaire brothers Zuber and Mohsin Issa and private equity partners TDR agreed to spend £6.8 billion buying a majority share Asda, although the deal is yet to be completed.
Now industry sources speaking to The Mail on Sunday said the sale of George is among a number of strategies being examined by the new owners, alongside the possibility of separating off its alcohol business and having it run by a third party.
Senior supermarket sources speaking to the paper said a sale of George could raise funds to reduce any debt used to buy the grocery chain.
Separate sources close to the Issa brothers told The Mail on Sunday that splitting off parts of the business was ‘not being contemplated’.
In September Asda was reported to be restructuring its George division, resulting in 50 redundancies made at its head office in Leicester.
The redundancies accounted for about 10 per cent of George’s total head office team of 500.