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Embattled convenience store retailer McColl’s has said it knows of no reason for a sudden surge in its share price today.

The stock is currently up by 71% to 3.4p in today’s trading, having plummeted to lows of 1.5p in February following fears it might collapse.

“McColls’s notes the recent rise in the company’s share price and confirms that it does not know of any reason for this price movement,” the group said in a statement to the London Stock Exchange this afternoon.

“As previously announced, the group remains in ongoing dialogue with its lenders with a view to achieving a longer-term agreement in relation to the balance of its existing facility. However, there is no certainty as to the successful outcome of these discussions.

“A further update will be made as and when these discussions conclude.”

McColl’s has been locked in talks with banks since February in a bid to secure its future survival following months of tough trading, with a number of profit warnings issued as the chain battled availability and supply issues, as well as lower footfall.

The Issa brothers are understood to have held talks to buy the business but later backed out, while wholesale supplier Morrisons is reported to be watching the situation closely.

Last month, CEO Jonathan Miller stepped down as the group continued to fight to avoid administration.