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Tesco is selling its upmarket bakery business Euphorium to Soho Coffee Reuters

Supermarket Tesco is selling its upmarket bakery business Euphorium as part of the group's plan to turn around its fortunes. Coffee-shop firm Soho Coffee is to buy Euphorium's four high-street stores and its Islington factory for an undisclosed fee.

Samworth Brothers, a long-term supplier partner of Tesco, has acquired Euphorium's Weybridge factory, also at an undisclosed price.

Tesco will take back ownership of the 57 in-store bakery concessions and smaller sites inside its Express stores, which were previously run by Euphorium. Staff at these concessions are to transfer back to Tesco.

The country's biggest supermarket is reocusing on its core UK supermarket operations as CEO Dave Lewis continues to try and turn the business around.

Tesco has sold off two of its biggest overseas businesses, Homeplus in Korea and Kipa in Turkey, since Lewis took the helm almost two years ago. It has also sold Dobbies Garden Centres, restaurant chain Giraffe and Harris + Hoole coffee shops, among other businesses.

Tesco and its major 'big four' rivals Sainsbury's, Asda and Morrisons have all come under pressure from German discounters Aldi and Lidl, which have attracted customers with consistently low prices.