Waitrose has pulled out of talks to acquire a stake in supermarket chain Planet Organic.

The upmarket retailer terminated discussions about a possible deal yesterday, as reported by Sky News.

The agreement, first agreed in November, would have seen Waitrose inject millions of pounds into the organic supermarket chain in exchange for a significant shareholding, retail industry sources said.

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Planet Organic, who hired advisors last month, is now seeking alternative sources of funding to support the next phase of its current growth plans.

The decision to pull out of discussions comes as chairwoman Sharon White is exploring the possibility to sell a minority stake in its ownership model – as a result of growing financial pressures in the John Lewis Partnership.

A spokesperson for Planet Organic declined to comment on the talks with Waitrose, but told Sky News that they are “working closely with our advisors to help us navigate options to secure further investment.”

They added: “This additional funding will enable us to support the next phase of our current growth plans.”

Waitrose’s executive director, James Bailey also commented: “We see Planet as an ideal partner in offering our customers the best in health and wellbeing products while building on our strategy to take Waitrose products to more customers.

“Their ethos on delivering quality for customers, while prioritising suppliers, the planet and our communities aligns perfectly with ours.”