Convenience group My Local has appointed KPMG to draw up plans for the future of the business.
News reports claim My Local, which took over 140 M Local stores from Morrisons last October, is currently going through a challenging trading period, which has been exacerbated by the impact of the National Living Wage. These claims have been countered as My Local took on Morrisons existing wage structures, believed to be above the National Living Wage minimum, when they took over the running of the stores.
It is understood options being looked at include placing the firm into administration.
It comes a month after reports My Local was looking to sell off around 20 of its stores to potential buyers including the Co-operative Group and J Sainsbury.
KPMG declined to comment and My Local was unavailable for comment.