Ocado shares were under pressure on Monday after a report over the weekend that a robotics start-up backed by the FTSE 100 firm is on the brink of collapse.
Karakuri, which has developed robots to make ready meals, is on the brink of filing a notice of intention to appoint administrators said Sky News.
RSM is expected to be appointed as administrator, possibly as early as Monday said the report.
Karakuri has attempted to secure additional funding and has been discussing a rescue with Henny Penny, a US-based food-service equipment manufacturer, but these talks came to nothing said the report.
Founded in 2018, Ocado bought a near-20% stake in Karakuri in 2019 for £4.75mln and was hailed by the delivery business as a potential star of the future.
Shares in Ocado were down 3.4% in early trades at 446.4p.