Musgraves, the Cork-based wholesale group, has announced the sale of its British retail business to Booker, the UK’s largest wholesaler, in a deal worth €57m (£40m).

Musgraves operates almost 1,800 stores under the Budgens and Londis brands in Britain. However, the business made a loss of €10.4m (£7.4m) in 2014 with sales of £833m.

“The grocery market in Great Britain is experiencing fundamental and permanent structural change, with intense competition and a deflationary environment,” said Chris Martin, CEO of Musgrave Group.

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“Having received a proposal from Booker, we concluded that a sale to Booker is the right thing for the Group and would be the most advantageous outcome for our retailers, colleagues and suppliers in Great Britain.”