The purchase of T&A Symonds by wholesaler Palmer & Harvey McLane has prompted fevered speculation over the future of retail chain Smile Stores.

The P&H deal, revealed by The Grocer last month, included T&A's wholesale business, but not its 90-store Smile Stores operation. That is still in the hands of the Symonds family.

Leading c- store operators are now believed to be considering moves for the Bristol-based chain, with industry speculation centring on Martin McColl and Spar retailer Tates.

One leading wholesaler said he expected Martin McColl, the UK's largest independent retailer with more than 1,200 stores, to go for Smile.

"There would be a natural fit as Martin McColl is also supplied by P&H and it is publicly looking for a major acquisition," he said.

In February, Martin McColl trading director Tony Start told The Grocer it had been looking for a large acquisition for more than a year, but reaching agreement on price had proved difficult. Martin McColl was unavailable for comment this week.

Another convenience source agreed a Martin McColl bid would make sense but said he believed Tates was a better fit. "There is a lot of common ground between the two retailers," he said.

However, Tates MD Geoff Hallam insisted it wasn't interested because Smile was not based in its franchised area within Spar UK, which takes in Birmingham and London. "If it had been in our region we may have had a look at it," he added.

Smile is located within the franchise area of south west Spar wholesaler Appleby Westward, which is owned by Irish retail group BWG, which could also be interested.

Unlike the other five UK regional wholesalers, Appleby Westward does not have a significant block of company-owned stores.

"Obviously there is a geographical fit," said the convenience source.

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