Morrisons to shut 132 McColl’s stores putting 1,300 jobs at risk

Morrisons is to shut 132 unprofitable McColl’s stores putting 1,300 jobs at risk, months after buying the chain out of administration.

The group bought the McColl’s chain in May, beating the owners of Asda to buy the retailer’s 1,164 stores and newsagents, although the deal was not cleared by the competition regulator until last month.

The majority of the closures will take place this year, while 55 stores that include a Post Office counter will close next year.

Morrisons said every affected worker would be offered alternative employment at a nearby McColl’s store, Morrisons store, logistics operation or foodmaking centre.

Joseph Sutton, Morrisons convenience, online and wholesale director, said: “We have a great deal of work to do but there’s no question that McColl’s is a business with strong potential.

“I’m confident that the combination of McColl’s conveniently located stores and great colleagues together with Morrisons scale, brand, systems and fresh food expertise will lead to a transformation of the business.

“We very much regret the proposed closure of 132 loss-making stores but it is, very sadly, an important step towards the regeneration of the business.

“I am confident that McColl’s can, in the Morrisons family, once again become a growing, thriving and vibrant convenience business serving local communities across the UK.”

Last month, the UK competition regulator paved the way for the clearance of Morrisons £190m rescue deal on the condition it sold 28 McColl’s stores in 35 areas where the two retailers compete.

All 16,000 McColl’s staff were transferred to Morrisons as part of the deal.