Musgrave is looking for independent retailers to take on 172 grocery stores that it plans to turn into franchises in the Britain, it has announced.
The stores will join 60 outlets that have been made into franchises since the Budgens chain was acquired by Musgrave in 2002.
Musgrave also confirmed it was still "very much" interested in acquiring rival Londis, as part of the group's strategy to become a 500-strong franchise operation.
The Irish company said it would start looking for the franchisees immediately, but would not put any price on the stores, saying each had to be considered separately. Under the franchise system people pay a fee to trade under a brand name, and the store uses its powers of bulk buying to support the independent store owners.
Musgrave said it was inviting independent grocery retailers and existing Budgens store managers to apply - as well as those who already held franchises within the chain.
Executive chairman Mr Eoin McGettigan said the company believed its stores would perform even better if they were operated by independent franchise holders.
He said: "We will not simply be looking for the highest bidder - it will be vital that the people who buy these stores share Musgrave's commitment to community-focused retailing."
Although Musgrave pulled out its bid for Londis, the grocery chain later reopened the process - leading to approaches from a number of other bidders.