Australian retailer Coles Myer has bought 49 outlets and four hotels owned by independent operator Theo's Liquor in Sydney, New South Wales for an undisclosed sum.

Coles Myer CEO John Fletcher said the company was keen on buying a further 20 stores and six hotels that Theo's ran in Queensland. However, existing owner Theo Karedis has entered into a three-year exclusivity arrangement by which he has agreed not to hold discussions with any third party for the Queensland businesses.

Coles Myer currently operates 528 liquor stores under its Liquorland, Vintage Cellars and Quaffers brands.