It has been reported that Home Retail Group is planning to sell its £1.5bn Homebase business so it can focus on bolstering the stronger Argos chain.
Home Retail Group has previously considered selling the DIY retailer, but the option has once again reared its head as group chief executive John Walden commences a company-wide strategic review of the group.

A final decision will be made in the coming weeks, according to the Mail on Sunday, which first reported on the potential sale.

A source told the newspaper that Homebase would most likely be sold to a private equity firm rather than spinning it off on the stock market.

The source added: "In the last few months it is back on the table and has become one of the key considerations in Walden's review.

"The question is straightforward: would you rather invest all your available resources into developing Argos or have to split it between the two?"

The Home Retail board would need to consider whether it is possible to sell a business that is in the early stages of a turnaround or if it would have to hand the new owners a dowry.

Another source added: "Any new owner of Homebase would undoubtedly need money to invest into improving Homebase and might expect Home Retail to make a contribution if they sold it tomorrow."

Earlier in the year Homebase reported a like-for-like rise in sales of 5.9% to £1,489.2m, whereas Argos reported a like-for-like sales increase of 3.3% to £4,051.1m.

A spokesman for Home Retail Group said the group declined to comment on market speculation.