McColl’s convenience store chain could fall into administration

Thousands of jobs could be at risk, as convenience store chain McColl’s is reportedly on the brink of collapse.

The retailer admitted it is “increasingly likely” it would fall into administration unless talks around a rescue deal are successful.

More than 16,000 people are employed by McColl’s, which has a partnership with Bradford-headquartered supermarket chain Morrisons.

The company says that without any fresh funding in the short-term, the group would likely “be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees”.

But the chain also noted yesterday – 5 May – that discussions are continuing.

The 1,400-store group has a wholesale agreement with Morrisons, as well as with Martin’s newsagents.

Earlier this week, the company said its shares would be suspended because it was unable to meet the deadline for filing its annual results.

Sky News has reported that Morrisons had put forward a deal to McColl’s lenders, which involved the supermarket injecting its own funding.

McColl’s raised £30m from shareholders last year to invest in driving the expansion of its Morrisons Daily convenience store format, but at the time it warned that footfall had been hit by the pandemic.

There are also suggestions that Asda’s new owners the Issa brothers may table a bid for a partial takeover of the business through EG Group which recently reported plans to expand both Cooplands Bakery and Leon burger, which it acquired last year.