Market sources believe the Co-operative Group is in negotiation with corner shop chain Alldays, with a view to purchasing the struggling store.

Alldays, which owns 600 convenience stores, has seen its market value has slump to £2.5million. If the Co-op decides to buy, it may also take on responsibility for Alldays £190m debt.

While Alldays confirmed on September 30 that it was in bid talks which could involve a debt restructuring, a store spokesperson said it would confirm its position in due course.