Convenience store chain McColl’s has been placed in administration, putting 16,000 jobs at risk.
The company operates 1,100 stores around the UK, including Morrisons Daily outlets and Martin’s.
In a statement yesterday (5 May), it said it was “increasingly likely” it would have to call in administrators if a rescue deal fell through. Today the company’s lenders confirmed that they would not extend banking agreements that would keep the business going.
Earlier this week, it told investors it was not in a position to publish its annual report for the 2021 financial year, due to ongoing discussions on a “potential financing solution” for the business.
Reports had speculated that rescue deal discussions could be with Morrisons and other parties, potentially including EG Group, which owns hundreds of petrol forecourts across the UK.
The company has now appointed PwC as administrators and the firm will look for a buyer “as soon as possible”.
The company had been in talks with multiple lenders since late last year and has raised a number of short-term cash boosts, but is still suffering from supply difficulties and the impact of reduced consumer spending.
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Morrisons proposed a rescue deal on Thursday which would include taking on McColl’s pension commitments and £170m in debt. There is still a possibility EG Group, owned by billionaire brothers Zuber and Mohsin Issa, could strike a deal, but the company has so far declined to comment.
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