16,000 jobs under threat as McColl’s plunges into administration
Convenience store chain McColl’s has today fallen into administration, putting 16,000 jobs at risk.
McColl’s – which has 1,400 stores – explained the company’s lenders did not want to extend banking agreements that were keeping the business afloat.
Accountancy firm PwC has been appointed as administrators and says it will be hunting for a buyer.
Bradford-headquartered supermarket chain Morrisons had put forward a rescue deal to try to safeguard the stricken chain. Morrisons is already in a partnership with McColl’s, which operates more than 200 Morrisons Daily convenience stores.
However, McColl’s said while discussions with Morrisons “made significant progress”, its lenders made clear they would not reach a conclusion that was acceptable to them.
A spokesman for McColl’s told the BBC: “In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration.”
A Morrisons spokesman said: “We put forward a proposal that would have avoided today’s announcement that McColl’s is being put into administration, kept the vast majority of jobs and stores safe, as well as fully protecting pensioners and lenders.
“For thousands of hard working people and pensioners, this is a very disappointing, damaging and unnecessary outcome.”
Asda’s co-owners the Issa brothers other business EG Group, is also preparing a a bid to save the bulk of the company, according the news reports.
McColl’s raised £30m from shareholders last year to invest in expanding its Morrisons Daily convenience stores, but at the time it warned customer footfall had been hard hit by the pandemic.