Wm Morrison, the privately owned supermarket chain, has drafted in City advisers as it considers how to contend with the financial struggles of its convenience store partner, McColl’s Retail Group.

Sky News understands that Morrisons has appointed Houlihan Lokey to explore options for its exposure to the embattled London-listed retailer.

It comes a month after McColl’s confirmed a Sky News report that it had received a takeover approach – which was from the petrol stations giant EG Group – but that those discussions had ended.

Morrisons, which is now owned by the private equity firm Clayton Dubilier & Rice, has a joint venture with McColl’s that now extends to more than 200 shops.

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The two companies plan to double that number in the coming years.

City sources said the appointment of Houlihan Lokey should not be interpreted as a sign that Morrisons planned to launch a takeover bid for McColl’s, although they acknowledged that the supermarket chain could seek to acquire sites as part of any break-up or insolvency process.

McColl’s said last month that it aimed to publish full-year results in May, and that it “continues to believe that a financing solution will be found that involves its existing partners and stakeholders”.

The convenience store group employs about 16,000 people, or roughly 6000 on a full-time equivalent basis.

In total, it trades from approximately 1100 sites.

Shares in McColl’s closed on Tuesday at 2.07p, having slumped by more than 90pc over the last year.

It now has a market value of just over £5m.

McColl’s and Morrisons declined to comment.

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