Morrisons is set to sell its convenience arm M Local as chief executive David Potts continues his revamp of the struggling supermarket.
The retailer is said to be in “advanced talks” with investment firm Greybull Capital, which has previously rescued budget airline Monarch Airlines, the Daily Telegraph reported.
It is understood that Greybull will provide tens of millions of pounds to fund the takeover and provide the stores with working capital, the paper said.
Morrisons has reportedly received a series of approaches for the convenience stores since earlier this year when it announced it would close 23 of the stores.
The M Local estate consists of between 150 and 160 stores, generating between £250 million and £350m in sales.
The retailer was later to the convenience market than rival offerings from other top four retailers, and analysts have said this led to it paying far higher rental costs for prime retail spots.
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