Convenience store group, McColl's has just fallen into administration as talks with Morrisons to buy the chain fell through, and PriceWaterhouseCoopers has been appointed as administrator.
However, according to Sky News, Asda could agree a deal later today to buy the stricken company.
McColl's, with 1,100 stores and 16,000 staff, confirmed creditors refused to extend a deadline for it to raise more cash.
The company said in a statement, 'In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration, appointing PriceWaterhouseCoopers as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible.
'Whilst the constructive discussions with the company's key wholesale supplier to find a solution with them to the Company's funding issues and create a stable platform going forward had made significant progress, the lenders made clear that they were not satisfied that such discussions would reach an outcome acceptable to them.'