The long-running private equity auction for Woolworths, the UK-based general merchandise retailer, moved out of neutral on Wednesday, when its parent Kingfisher reaffirmed its intention to demerge the division and sell it in a management buy-out.

The frontrunners are believed to be Charterhouse Development Capital and Schroder Ventures, though Cinven and Nomura's principal finance group have also been mentioned as contenders.