Kwik Save could be the target for a GBP70m (US$137m) re-financing package from a mystery tycoon, reports in the UK press have suggested. However, the struggling chain has remained silent on the rumours.

According to the Financial Mail, the investment could trigger redundancies, store closures, and a clearout of under-performing brands.

The Sunday Times reported yesterday (28 January) that Kwik Save's former chief executive Paul Niklas has been trying to put together a rescue deal. The struggling chain, which was spun out of Somerfield last February, is running out of basic merchandise in some of its 220 stores, according to the newspaper.
The discount chain secured new financial backing of around GBP30m in October 2006, when it also acquired another 45 stores from previous owners Somerfield.

A spokesperson for Kwik told just-food: "We have no comment, it is all speculation at the moment."