Kodak plans to sell Fox Photo’s retail division.

Kodak, which bought the large photo finishing company last December, will retain the 20 wholesale photo finishing labs, mostly in the Southeast and Southwest, company spokesman Henry Kaska said. However, Rochester, N.Y.-based Kodak will sell 500 stores, 200 with mini-processing labs, Kaska added. Fox’s retail division, which accounted for $85 million of its total 1986 revenue of $186 million, has 500 outlets and employs 2,000 people in 23 states.