Woolworths is set to benefit from the selling of non-core business at Coats Viyella as it pays out an estimated £10m to take control of the children's apparel brand Ladybird, according to reports in the Guardian.

For more than 70 years Woolworths has been clothing children from its high street stores, and now, with the Coats Viyella board breaking up the company in an attempt to please majority shareholder Guinness Peat Group, it will be able to build on its already strong brand image.

The Ladybird brand is just one of the non-core business lines that are being sold off by Coats Viyella, others include the knitwear line Straven, sold to Richard Roberts and Irish linen maker Ewart Liddell , which was sold to Arda. The total sales from Coats Viyella has been estimated at £21m.

The profits from the sell offs will be used to pay off some of its debt as it turns to focus on its retail stores Jaeger and Viyella and the newly aquired French textile company Dollfus-Mieg et Cie.