McColl’s Retail Group said on Thursday it may soon be placed into administration “with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees.”

McColl’s has over 1,100 convenience stores and newsagents. It operates McColl’s and Morrisons Daily branded convenience stores as well as newsagents branded Martin’s across the UK, except in Scotland where it operates under its heritage brand, RS McColl.

McColl’s shares have fallen about 97% over the past 12 months and the group now has a stock market value of only £3 million.

In a stock exchange statement, McColl’s said it noted “recent press speculation” regarding the group.

“As previously disclosed on 25 April 2022, the group remains in discussions regarding  potential financing solutions for the business to resolve short term funding issues and create a stable platform for the business going forward,” said the company.

“However, whilst no decision has yet been made, McColl’s confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the group would be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees.

“Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the group’s ordinary shares.

“A further update will be made as and when appropriate.”