Morrisons is examining its options regarding the financial struggles of its convenience store partner, McColl's Retail Group PLC.
The supermarket chain, owned by a US private equity firm, has a joint venture with McColl's that extends to more than 200 shops and is set to increase to about 450 by the end of 2022.
Morrisons has hired US bank and financial services company Houlihan Lokey (NYSE:HLI) to examine the options regarding its exposure to London-listed McColl's, Sky News reported.
McColl's confirmed last month that it had received a takeover approach for the whole business from petrol station and fast food retailer EG Group, but that these talks had ended.
However, it also said at the time that it had received indications of interest for parts of the business and that it would consider all options.
The appointment of Houlihan Lokey (NYSE:HLI) should not be interpreted as a sign that Morrisons plans to launch a takeover bid for McColl's, Sky News reported, citing “City sources”, although the supermarket chain could seek to acquire sites as part of any break-up or insolvency process.