Thousands of jobs could be at risk amid reports that convenience store chain McColl's is on the brink of collapse.

The retailer said it was "increasingly likely" it would fall into administration unless talks around a rescue deal were successful.

Sky News has reported that the company could call administrators today.

This triggered a statement to the stock market, in which the retailer confirmed the depths of its financial troubles.

It said: "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.

"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."

Earlier this week, the listed company warned that its shares would be suspended because it was unable to meet the deadline for filing its annual results.

McColl's said that its accounts would not be signed off in time to meet the deadline.

More than 16,000 people are employed by McColl's, which also has a partnership with supermarket Morrisons.

Sky News reported that Morrisons, one of Britain's biggest supermarkets, had proposed a deal to McColl's lenders, which involved the supermarket injecting funding.

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