Shares in corner shop chain McColl's Retail Group PLC (LSE:MCLS) jumped on reports that it has received a lifeline offer from partner Morrisons.
The company confirmed overnight that it "remains in discussions" about potential financing to help with its funding issues but said "no decision has yet been made".
But Morrisons has proposed "a last-gasp rescue deal", according to Sky News on Friday.
McColl's said in its statement on Thursday that if short-term funding cannot be agreed it was "increasingly likely" that it would be placed into administration.
Following that statement, Morrisons later tabled a proposal to take on the chain's loans in full and protect its pension scheme, Sky reported.
Its shares dropped around 90% since the start of the year, after warning that even a successful outcome in funding talks is "likely to result in little or no value" to its shares.
Today, shares were 26.64% higher at 1.45p in morning trade.