A CONVENIENCE store chain with shops across York is reported to be on the brink of collapse, potentially placing thousands of jobs at risk.

McColl's has shops in Crichton Avenue, Clifton, Hamilton Drive West, Acomb, Gale Lane, Acomb, Moorcroft Road, Woodthorpe, and Oak Tree Lane and The Village in Haxby as well as stores in Selby, North Duffield and Bubwith.

The business said it was "increasingly likely" it would fall into administration unless talks around a rescue deal were successful.

READ MORE: Morrisons launches last-minute bid to save troubled McColl’s

They have been in discussions with potential lenders to shore up the business, which struggled badly during the pandemic due to supply chain issues, inflation and a heavy debt burden.

The statement on Thursday came after Sky News reported the company could call administrators in on Friday.

More than 16,000 people are employed by McColl's, which also has a partnership with supermarket Morrisons.

In a statement in which it described itself as “the UK’s leading community retailer”, a representative said: “As previously disclosed on April 25 2022, the group remains in discussions regarding potential financing solutions for the business to resolve short-term funding issues and create a stable platform for the business going forward.

“However, whilst no decision has yet been made, McColl’s confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the group would be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees.

“Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the group’s ordinary shares.”

The spokesman said a further update would be made “as and when appropriate”.

Asked about a report by Sky News that administrators could be called in as early as Friday, he said there would be no comment beyond the statement issued on Thursday.

Earlier this week, it was revealed the group was set to have its shares suspended from the London Stock Exchange as bosses said they would be unable to get its accounts signed off by auditors in time.

Shares in the company had already plunged as it reported last month that talks with its lenders and banks would likely leave shareholders empty-handed under rescue efforts.

The group runs more than 1,100 convenience shops across England, Scotland and Wales.

According to its website, it serves about five million customers each week, having been founded in Glasgow in 1901.