J Sainsbury, the supermarket giant, has joined a queue of bargain-hunting shoppers examining a last-ditch rescue of the Planet Organic brand.

Sky News has learnt Sainsbury’s has pitched an offer for Planet Organic’s name and intellectual property assets in a deal that would probably be implemented through an insolvency process.

Retail industry sources said the grocer’s interest was “speculative” and downplayed the chances of a deal taking place.

It comes after rivals, including Waitrose, have also held talks with Planet Organic’s advisers at Interpath Advisory about a deal.

Last week, Sky News revealed the health foods chain Holland & Barrett was also weighing an eleventh-hour bid for the organic food and personal care chain.

Insiders tipped H&B, which is owned by the Russian-linked investment group LetterOne, as the likelier buyer of parts of Planet Organic.

Redbus Ventures, an investment vehicle set up by one of the founders of Lovefilm, has also lodged an offer.

Planet Organic trades from just over a dozen stores and employs roughly 360 people.

A resolution of the company’s future is expected this week, following the extension of a notice of intention to appoint administrators.

Any deal is likely to involve a substantial number of redundancies.

Planet Organic chief executive George Dymond told staff last month it had “not got back to the levels of sales that we were seeing before the pandemic”.

He added: “So, while we have taken every possible action to improve our position, including additional investment from our existing shareholders, we have so far been unsuccessful in raising sufficient funds needed to support the business and the growth plan.

“I want you all to know how very sorry I am that we are in this position – I am conscious that this will be a very uncertain time for you all.”

Read more from business:
Unemployment rate increases
Forced installation of prepayment meters banned for over-85s
New data shows high cost of impersonation scams

Planet Organic, which was founded in 1995 by Renee Elliot, has been working with Interpath on a review of its strategic options since early this year.

The chain sells organic food and drink, as well as healthcare and body care products.

Like many retailers, its recent performance has been hampered by the pandemic and reduced city centre footfall.

It is understood to have been loss-making in each of its last two financial years.

Sainsbury’s and Interpath declined to comment.

Related posts:

Burberry shares plunge as Marco Gobbetti quits for ‘another opportunity’ Nissan UK gigafactory could be announced this week in major commitment to UK Departure of boss who steadied the ship leaves Burberry with sinking feeling PM Johnson to host bosses for talks amid ‘pingdemic’ anger Barclays half-year profits almost treble to £5bn as it claws back bad debt provisions Sunak faces calls to cut VAT on fuel as retailers defend ‘necessary’ pump price hikes Putin ally and boss of Russian oil giant has £86m yacht seized in France China protest, Cyber Monday and diamonds Energy crisis prompts desperate search for nuclear workers in France Co-operative Bank finds Sainsbury’s un-cooperative over £650m mortgage deal Richard Branson’s satellite launching firm Virgin Orbit files for bankruptcy protection Younger buyers behind jump in gold investments