Convenience store business McColl's, which has a branch in Union Street in Ryde,  has confirmed it is struggling and says that it could fall into administration. 

The store is the chain's only one on the Isle of Wight.

The chain has been in discussion with potential lenders to shore up the business, which struggles badly during the pandemic due to supply chain issues, inflation and heavy debt. 

Saying that unless talks are successful, it is "increasingly likely that the group would be placed into administration".

The business has some 16,000 employees, the majority of whom are part-time, a spokesman said as well as more than 1,100 stores across England, Scotland and Wales.

Isle of Wight County Press: Thousands of jobs are at risk. (PA)Thousands of jobs are at risk. (PA)

The retailer shared a statement that they desired themselves as "the UK's leading community retailer" they said, "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."

Adding that "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."

The spokesperson further said that an update will only be made "as and when appropriate".

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.