Primark's parent company Associated British Foods PLC (LSE:ABF) has confirmed that it is in talks about potentially selling its Allied Bakeries business.
The FTSE 100 group made the statement in response to recent media speculation, adding that it is "in discussions" with Endless, the owner of bread brand Kingsmill, about a potential deal.
Allied Bakeries makes breads under brands including Hovis, Allinson's and Sunblest.
AB Foods said in its interim results only last week that it was evaluating strategic options for loss-making Allied Bakeries, which it said faces a "very challenging" market.
Today the group repeated that it is still evaluating strategic options and that "we remain committed to increasing long-term shareholder value".
It said a further announcement will be made if appropriate and that there is no certainty that a transaction will be agreed.
Sky News, which first reported the talks at the weekend, said sources indicated ABF is also said to be exploring other options.