Australian retailer Coles says it will consider all options for the sale of the company, including the break up of the group. Coles’ management stated this while announcing the retailer’s half-year figures which increased 3.5 per cent to AU$501mn (US$393mn). Coles expects full-year earnings of about AU$787 mn (US$618mn), which is in line with a previously forecast.

The company is inviting bidders for the whole company or for one of three divisions: Target, Officeworks and the Everyday Needs Business, which includes Kmart, supermarkets and liquor stores. According to chairman Rick Allert, it could be up to six months before the future of Coles Group is known.

Allert said the board is looking at the potential sale of a significant stake of the supermarket, which could end up remaining a listed company. “We are pleased with the level of interest of parties wanting to buy the business as a whole, or buying parts of it," he said, but he did not name any potential bidder. It is believed that Kohlberg Kravis Roberts (KKR) leads a six party syndicate that is favoured to lead the bidding.

Coles’ chief executive John Fletcher told the Australian media this morning that the conversion of Bi-Lo into Coles supermarkets will be put on hold while the ownership review takes place. So far 139 Bi-Lo stores have been converted with 73 still to make the change.