The brand’s strong recognition is hoped to help strengthen the retailer’s number one position in toys. Chad Valley is understood to have generated annual sales of around £65m for Woolworths.
Home Retail chief executive Terry Duddy said on Wednesday last week that ownership of such brands provides Argos with the chance to strengthen its position and product offering.
The retailer may also be set to buy more brands. “We’ve got an open mind, dependent on the opportunities that arise,” he said.
Home Retail revealed a 24 per cent fall in profits to £328m, just ahead of City expectations. Sales declined one per cent to £5.89bn.