British convenience retailer McColl's has issued a profit warning and said it was looking at new funding options after an unnamed party withdrew its takeover approach to buy the company.
The convenience store chain said it was not in talks with any party regarding a complete takeover, but was reviewing indications of interest for parts of its business.
McColl's said its fiscal 2022 adjusted core profit would now fall 'slightly' behind current market expectations after a weak first quarter in which a surge of Omicron cases hurt store footfall in Britain.
Shares of McColl's were last down about 58% at 3 pence on the London Stock Exchange by 08:55 GMT. The company's market value at current prices stood at £8.3 million.
The company, which has been negotiating with lenders since last year, said it was in talks with banks for a longer-term agreement to secure more funding.
The Brentwood, UK-based retailer said it expects net debt in the region of £100 million at fiscal 2022-end, up from £97 million at end of the previous financial year.
'The group continues to believe that a financing solution will be found that involves its existing partners and stakeholders,' McColl's said in a statement.
The company, which operates more than 1,100 convenience stores, did not name the party that made the takeover approach.
Petrol station operator EG Group is believed to have expressed interest in the business but decided against making an offer, a Sky News report said citing sources close to the process.
Morrisons is also monitoring McColl's situation closely, with a view to possibly acquiring hundreds of its stores out of insolvency, the report noted.
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McColl's is working with advisers to find a buyer or parties to inject fresh capital into the business, Sky News reported on Saturday.
The company said on Monday product availability in its stores, hurt by supply chain issues affecting many British companies, had improved since the start of the new fiscal year.