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Struggling discounter Wilko is seeking fresh capital from turnaround investors as it continues to work on a restructuring agreement.
The retail chain is working with advisors in a bid to raise tens of millions of pounds in new equity, according to a Sky News report this weekend.
Wilko has reportedly approached a handful of prospective financial backers for a cash injection as it works on finalising a company voluntary arrangement (CVA) to cut costs and rent.
A source told Sky that a sale of a minority stake in return for equity funding was the most likely outcome of the new talks.
As The Grocer reported last month, Wilko is not planning to close any of its 400 stores as part of the CVA.
The business also recently secured a £40m two-year revolving credit facility with lender Hilco UK to give it headroom if trading worsened this year.
Morning update
It’s a quiet start to the week as the summer season gets underway in the City, with the FTSE 100 flat at 7,253pts.
With no updates to drive fmcg share prices, early risers are Virgin Wines UK, up 3.5% to 30p, Glanbia, up 2.7% to €13.91, Just Eat Takeaway, up 0.9% to 1,157.8p, and AG Barr, up 0.6% to 458.3p.
Losers so far are Kerry Group, down 3.1% to €88.08, Naked Wines, down 2.8% to 78.6p, and Ocado, down 2.6% to 576.6p.
This week in the City
It looks like being a slow week in the City, with the latest BRC-KPMG retail sales figures for June out tomorrow, alongside consumer card spending data from Barclays.
Pub group JD Wetherspoon is due to put out a trading statement on Wednesday.
And PepsiCo is the latest CPG giant to release quarterly figures in the US on Thursday.
Friday brings a full-year trading statement from household goods maker McBride.
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