Woolworths will be selling off Dick Smith as part of a $300 million restructure of the electronic chain.

Expected to see the closure of up to 100 underperforming stores over the next two years, Dick Smith will be divested to interested buyers who have already approached the company in relation to the sale, but in the meantime the chain will operate as normal.

Woolworths said it wants to strategically concentrate on strengthening its larger format stores, multichannel and high volume retail segments with market-leading positions. It also believes that the Dick Smith business can be better realised through new ownership.

“Dick Smith is an iconic speciality consumer electronics brand, with a strong team and its own leading online presence. It has developed into a trusted technology retail and services hub, carrying world-leading brands with strong market share in several key categories. However we believe that separating this specialty model from Woolworths is now the best option for the future for both businesses,” Chief executive Grant O’Brien said.

O’Brien also said consumer electronics remains to be an important category for Woolworths and the company will continue its growth through BIG W.

“A divestment of Dick Smith will enable the Woolworths group to focus more investment on serving customers in its core business with a strong multichannel offer, backed with market-leading fulfilment systems and an effective store network,” he said.

In its half year results, Woolworths announced sales of its consumer electronics division in Australia increased 0.7 per cent and 3.1 per cent for the second quarter.