SUPERMARKET giant Asda has secured a financial boost ahead of a planned tilt at frozen food retailer Iceland, it has been reported.
The chain, which is part of American retail giant Wal-Mart, has lined up backing from Barclays Capital as it looks to beat off bid competition from Morrisons and Iceland’s own management team, the Sunday Times said.
The retailer is being sold off by creditors to Icelandic bank Landsbanki, the collapsed bank that took control of the 800-strong chain in 2008. Potential bidders are expected to receive sales information this week.
Iceland has boomed since the downturn as sales of frozen food have grown because consumers consider it to be good value for money.
Founder and chief executive Malcolm Walker, who along with other members of the senior management team owns a 23% stake in the company, is thought to be in pole position to land the business.
For Wal-Mart, the move is an opportunity to grow international sales.