Forestry group Gunns Ltd
(ASX:GNS) plans to sell eight Mitre 10 hardware stores to cut debt.
The Australian Financial Review reports that Woolworths and Bunnings are believed to be contenders to buy the outlets.
The announcement of the sale comes as the company receives pressure from shareholders following a slump in earnings and its shares.
Calls for Chairman John Gay to step down have dominated media reports this week, with shareholders Concord Capital and Perpetual Investments asking him to resign.
Gunns is pushing ahead with a new strategy that will leave it with four divisions: the pulp mill, plantation assets, the sawmilling business and construction, hardware stores and the Tamar Ridge wine business.
There is speculation the company will sell off all non-core assets in the coming months, including Tamar Ridge Winery and its construction operation Hinman, Wright and Manser.
Gunns posted a profit of $56.24 million for the 2009 financial year.
