Tesco plans sale of Žabka grocery chain?

Tesco may have opened the way to sale of Žabka chain of grocery stores according to recent media speculation. Tesco reorganized the chain’s structure by shifting Žabka business into a new company called Tesco Franchise Stores, while keeping the company’s CZK 3bn in debt in Tesco Property, itself the owner of CZK 5.6bn in real estate. The server e15 writes, that the value of the Žabka stores shifted into Tesco Franchise Stores is estimated at CZK 516m. In the last financial year which ended in February 2015 Žabka reported a loss of CZK 192m. In this financial year, writes the server, the chain plans to close 30 loss-making stores.