Convenience store chain McColl’s has confirmed it will collapse into management, putting 1,100 stores and 16,000 workers at risk.

The troubled retailer held talks with its lenders on Friday morning in the hope they could extend the loan agreement.

Supermarket giant Morrisons, which is a major wholesale partner, has also launched a last-ditch effort to subtract business.

However, the company confirmed, “the lenders have made it clear that they are not satisfied that such discussions will achieve an outcome they are able to accept”.

Morrisons made a last-minute rescue deal to save McColl (Ian West/PA) / PA wire

It said the company would now appoint administrators from PwC in an effort to “protect the future of the business and protect the interests of employees”.

The company said it hopes that administrators will help “to make the sale of the business to third-party buyers as soon as possible.”

It is understood that Morrisons is still interested in a takeover, while Sky News has reported that conglomerate giant EG is interested in a deal.

Earlier on Friday, Morrisons forged a rescue agreement that would also treat the business as a permanent concern, deal with debts of more than £100m and take charge of the company’s pension scheme company.

The two businesses are major partners, McColl operates hundreds of convenience stores under the Morrisons Daily brand.

McColl’s has struggled financially in recent years after seeing costs skyrocket due to supply chain disruptions, inflation and a large debt burden.

On Thursday night, McColl’s said it was in talks about “potential financial solutions” to resolve its funding issues.

McColl shares were suspended earlier this week after the company delayed the release of its latest financial results due to financial negotiations.

A spokesman for the McColl Retirement Program trustees warned employees could miss out on post-management payments and urged any new owners to protect these plans.

Pension schemes are key stakeholders in the company, and trustees urge all potential bidders to make it clear that they will honor the promises of a 2,000-year pension, said the person. members of McColl and its subsidiaries, and will not seek to break the link between the programs and the company. “

The trustees added: “Breaking the link between schemes and sponsoring companies, by administering the package first, would represent a serious breach of pension promises for employees have faithfully served the business for many years and the risks pose plans to participate in the Retirement Protection Fund with the result that benefits are reduced. “


Please enter your comment!
Please enter your name here