Troubled global retailer Ahold is to sell its operations in four South American countries to focus on stable markets and gather funds to reduce its debt.

The Dutch group has been embroiled in financial accounting scandals in the US and Argentina over the last two months.

Ahold said it would now divest its wholly-owned subsidiary Disco and in Brazil sell-off Bompreco, G Barbosa and Hipercard, plus 32 supermarkets in Peru and 10 in Paraguay.

Earlier this week Ahold’s Santa Isabel failed to meet the deadline to post its 2002 earnings and Chilean regulators suspended stock trading in the supermarket chain.