Tesco is drawing up plans to sell loss-making businesses including Midlothian-based Dobbies Garden Centres in order to focus on core operations, according to Sky News.
Sky News said Tesco had appointed investment bank Greenhill to work on the sale of Dobbies.
Dobbies was bought by Tesco in 2008.
A Tesco spokesman said the company did not comment on “rumour and speculation.”
Dobbies has 35 garden centres across the UK, many of which are attached to Tesco stores, but posted a £48 million loss in its 2014-15 financial year after writing down the value of real estate.