Shoefayre reported operating losses of more than £6 million last year.

The Co-op did not disclose the price it had received but said sales at the chain had suffered amid increasing competition and difficult trading conditions at the lower end of the footwear market.

It added that the business was not a core part of its operations and needed considerable investment over a long period of time to put it back on a sound financial footing.

The group said: "In the circumstances, sale of the business to a well-known and profitable footwear retailer is both logical and desirable."

Co-op took full control of the company in 2005 from a group of co-operative shareholders, and launched a recovery programme to try to cut costs and improve the ranges.

The chain employs 1,900 people and runs 240 stores across the UK, generating annual sales of around £65 million.

New owner, Shoe Zone, has 400 stores in the UK, with annual sales of more than £150 million. It employs more than 3,000 people. It declined to comment on the future of jobs at the Shoefayre chain.