By Jonathan Davies
Morrisons has seen its share price fall 1% after reports claiming it is close to selling its M-Local convenience stores.
It is understood that the supermarket is in advanced talks with Greybull Capital, the investment firm that turned around Monarch Airlines when it was close to collapse.
Greybull is expected to fund the takeover, which involves a number of industry executives, and will provide working capital to the stores.
Earlier this year, Morrisons said that it was reviewing the future of M-Local. The supermarket entered the convenience store market late compared with Tesco and Sainsbury's. But chairman Andy Higginson claimed that more than 30% of the stores had not worked.
The sale could result in £250-350 million for the struggling supermarket.
Market analysts suggested that previous chief executive Dalton Philips' tactics led to Morrisons paying huge rental costs for its M-Local stores, like on Oxford Street in London.