Morrisons retail partner exploring potential multi-million pound fundraise
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Convenience store group McColl’s is planning to raise cash to accelerate the expansion of its partnership with Bradford-headquartered supermarket chain Morrisons.
Sky News has reported that McColl’s Retail Group has approached institutional investors about a placing to raise almost as much as its existing £40m market capitalisation.
It adds city sources have said that Jonathan Miller, the company’s long-serving chief executive, is likely to invest a seven-figure sum in McColl’s shares as part of the fundraising.
In a statement released this morning, McColl’s has confirmed it is currently exploring options relating to a potential capital raise to increase the number of its Morrisons Daily store conversions, accelerate the pace of roll-out of its Morrisons Daily store conversion programme, and strengthen its balance sheet.
It adds: “No final decisions have been made on whether to proceed with a capital raise or with regards to the timing or size of any such capital raise. The company will make a further announcement if and when appropriate.”
McColl’s, which trades from about 1,200 convenience stores and newsagents across Britain, has a wholesale supply deal with Morrisons.
As part of this partnership, McColl’s is turning hundreds of sites to a store format branded “Morrisons Daily”.
The alliance was extended by three years in February, and is now due to continue until 2027.