CONVENIENCE store retailer Alldays saw its shares plunge 20 per cent yesterday as it revealed it was trying to secure more bank loans to pay for its franchise buy-up plan.

Alldays began buying up some of its 500 franchise stores in June as part of a plan to cut overheads and improve poor-performing outlets.

However, the Chandler's Ford-based convenience store group warned the move would drive the group into the red this year and that it needed financial backing to continue its plan to buy the majority of the 450 franchises during the next 18 months.

A spokesman for the group yesterday said that Allday's chief executive, Colin Glass, and chair-man James Watson were continuing talks with banks to secure multi-million pound loans.

"The talks have been very lengthy but we think they are about to come to a reasonable conclusion,'' he said.

Shares in Alldays, which has stores across the UK, except in London, fell 16p to 63p on the news. The talks have forced Alldays to postpone announcing its half-year results, which are normally released in mid-July but are now not expected until the end of this month.

Around half of Alldays' stores are run as franchises by independent businesses known as Regional Development Companies.

Since June, Alldays has bought four, leaving 28 with about 450 stores still on the group's shopping list.

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