Wal-Mart de Mexico, a retailer in the country, may sell its restaurant unit, including the Vips chain, after receiving interest from potential buyers. Walmex, which is controlled by Wal-Mart Stores Inc, reported weak same-store sales recently. "Part of the reason is that there have been third parties in the past who have expressed interest (in the restaurants)," Antonio Ocaranza, Spokesman, Wal-Mart de Mexico, was quoted as saying in a Reuters report.
The restaurant group is mostly made up of the 265-strong Vips chain, which sells Mexican breakfasts and dinners as well as hotcakes and cheeseburgers in a format similar to a US diner. The division also includes 92 El Porton restaurants that sell Mexican food and seven Ragazzi restaurants, specialising in Italian food.
Walmex said in a statement that the proposed sale was at an early stage and that there was no guarantee that it would reach a deal. Last year, the restaurant division accounted for just 1.7 per cent of Walmex's revenue and 1.6 per cent of its earnings before interest, taxes, depreciation and amortisation, the company said.