Kwik Save is understood to be considering two options. One involves a pre-pack administration deal that would rely on Kwik Save's lead investor, Irish property tycoon Brendan Murtagh, providing more funds to secure its future. The alternative is for administrators to be appointed to regain as much cash as possible for creditors by selling assets.
KPMG was appointed to advise Kwik Save on a strategic review last month and is considered a likely choice of administrator if that route is taken. Kwik Save declined to comment.
Rival retailers Iceland and Co-operative Group - once mooted as potential buyers of Kwik Save - have ruled themselves out of bidding for the business as a whole.