SUPERMARKET giant Sainsbury’s has agreed to sell its Argos brand for at least £120 million, a decade after it bought the chain for £1.4 billion.

Swift Partners — formed by retail veterans including former Co-operative Group boss Richard Pennycook — will see 1,400 Argos staff transfer to the newly formed company along with the Habitat brand, its distribution centre in Daventry and sourcing offices in Shanghai and Hong Kong.

Hinting at a return of the Argos catalogue, Mr Pennycook said:

“We see clear potential to strengthen Argos’s customer proposition, digital capabilities and nationwide reach.”

Sainsbury’s chief executive Simon Roberts said Swift brought “a deep commitment and belief in the future potential for Argos customers and colleagues” and that it would remain “business as usual” for workers.

Usdaw national officer Bally Auluk said the “announcement will create uncertainty for those affected” and assured the union would support workers “throughout the process.”

“We welcome the commitment to keeping the model of store in stores, standalone stores and local fulfillment centres and that any changes will be handled fairly, transparently and in consultation with employees and their union representatives,” he said.