Morrisons (LON:MRW) is in talks to sell its convenience store branch of the company to the same investment firm that rescued Monarch Airlines, Greybull Capital.

The deal was first reported in The Telegraph yesterday. Chairman Andy Higginson admitted that more than 30% of its convenience stores had not worked, and confirmed plans earlier this year to close more than 20 M local stores.

Greybull Capital took over Monarch last year, investing £125 million into the company and setting it track to make a profit. The takeover of Morrisons local stores is rumoured to be worth tens of millions.

In February, David Potts took over as chief executive of the struggling chain, and has since turned the company around, making it one of the best performing supermarkets over the 2014 Christmas season. The sell-off of M local stores is the next in a series of structural changes he has made to the company.

Morrisons is currently trading down 0.88 percent, at 176.24 pence per share.