The review was triggered after a takeover attempt by Budgens owner Musgrave fell through last year.

KPMG Corporate Finance, which conducted Londis's review, will now start talks with interested parties to seek out the best deal.

Potential buyers are reported to include Musgrave, Iceland owner Big Food Group and food retailer Co-op.

"KPMG will be asked to determine whether a suitable deal can be agreed which would achieve Londis' objectives," Londis said in a statement.

"This will then be put to the shareholders for their approval as soon as practicable."

The bid approach from Musgrove collapsed in December last year following a row over potential payments to Londis' directors.

About 2,000 storeowners who have a stake in the company stood to get �10,000 each from the Musgrove offer.

But the storeowners were angry that four Londis directors were set to share �20m from the deal.