AF Blakemore, Spar’s largest supplier, has hired advisers at KPMG to explore a £100m sale of its wholesale arm, according to The Telegraph.
The company's wholesale arm operates from 13 cash and carry depots and supplies more than 1,000 Spar convenience shops. Its retail division owns 290 branches of Spar around the UK.
Bestway, which is currently the UK’s fifth largest wholesaler and makes £2.5bn in sales, has reportedly expressed interest in buying the business to bolster its presence in a rapidly changing market.
AF Blakemore made £1.3bn of sales last year but just £7.6m of pre-tax profits, highlighting the wafer thin margins within wholesaling.