Kwik Save lines up administration

Kwik Save has filed a notice of intention to enter administration.

The troubled retailer is working with KPMG restructuring experts in a bid to look for new funds, and is understood to be considering entering into a pre-packaged administration.

Pre-packs see troubled business find funding or new owners prior to entering administration. They then file for administration and sell the company's assets immediately into the new structure, free of many of the previous company's credit liabilities.

But if new funding is not found, then 2,000 jobs at the retailer are under threat. It has a deadline of next Friday to refinance or enter into administration.

Further reading:

Web exclusive: Kwik Save hit by dramatic rise in CCJs in last few months

Administration is tactical victory for relegated clubs