Sainsbury’s could swoop for some or all of Iceland’s 750 stores if the frozen food retailer is broken up following a sale.

Property director Neil Sachdev confirmed the supermarket was interested in a move for the stores, although he described some of the sites in the estate as “pretty inferior”.

“Everyone is looking at Iceland,” he told the Daily Mail. “When and if it comes up for sale then we will take a look. What we don't know is if Iceland will be sold whole or just broken up.”

A successful move for the stores would provide a major boost to Sainsbury’s convenience ambitions.

Administrators for Icelandic bank Landsbanki, which holds a two-thirds stake in the retailer, are thought to want up to £2bn for the business.

Chief executive Malcolm Walker is keen on regaining control of the chain and has indicated that his £1bn offer remains on the table.

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Landsbanki signals Iceland sale (28 January 2011)