Private equity sets sights on Home Retail Group

The firm's poor performance this year, coupled with difficult stock market conditions, have lowered its share price, trigerring interest from potential buyers, thought to include several private equity funds.

With a market cap of almost £606m, very little value is attached to its portfolio brand Argos, analysts told The Telegraph. After the company's share price fell 60% over the past year, it is expected to issue a profit warning this Christmas.

Home Retail brand Argos reported sales of £4.3bn in the previous financial year, but its valuation remains low. The same source stated that a more aggressive management could make Argos more efficient and increase the companies value.

Home Retail Group was created in 2006 from the brands Argos and Homebase.

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