Morrisons launches last-minute bid to save troubled McColl’s

The PA news agency understands that Morrisons has now approached PwC, who are advising lenders to McColl’s.

Henry Saker-Clark
Friday 06 May 2022 11:26
Morrisons has tabled a last-minute rescue deal for troubled convenience store chain McColl’s (McColl’s/PA)
Morrisons has tabled a last-minute rescue deal for troubled convenience store chain McColl’s (McColl’s/PA)

Morrisons has tabled a last-minute rescue deal to save struggling convenience store business McColl’s.

The chain confirmed on Thursday that it is looking “increasingly likely” it could tumble into administration, putting the future of 1,100 shops and 16,000 employees at risk.

The PA news agency understands Morrisons has now approached PwC, who are advising lenders to McColl’s. This would save the vast majority of jobs and stores.

A rescue deal would also take on the business as a going concern, absorb its debts of over £100 million and take responsibility for the company’s pension scheme.

Morrisons has tabled a last-minute rescue deal to save McColl’s (Ian West/PA)

Morrisons and McColl’s declined to comment on Friday.

The two businesses are major partners, with McColl’s operating hundreds of convenience shops under the Morrisons Daily brand.

However, McColl’s has struggled financially in recent years after witnessing soaring costs due to supply chain disruption, inflation and its large debt burden.

On Thursday evening, McColl’s said it was in talks over “potential financing solutions” to resolve its funding issues.

“However, whilst no decision has yet been made, McColl’s confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the group would 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,” it added.

“Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the group’s ordinary shares.”

Shares in McColl’s were suspended earlier this week after the company delayed the publication of its latest financial results due to its financing talks.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Please enter a valid email
Please enter a valid email
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Must be at least 6 characters, include an upper and lower case character and a number
Please enter your first name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
Please enter your last name
Special characters aren’t allowed
Please enter a name between 1 and 40 characters
You must be over 18 years old to register
You must be over 18 years old to register
Opt-out-policy
You can opt-out at any time by signing in to your account to manage your preferences. Each email has a link to unsubscribe.

By clicking ‘Create my account’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Register for free to continue reading

Registration is a free and easy way to support our truly independent journalism

By registering, you will also enjoy limited access to Premium articles, exclusive newsletters, commenting, and virtual events with our leading journalists

Already have an account? sign in

By clicking ‘Register’ you confirm that your data has been entered correctly and you have read and agree to our Terms of use, Cookie policy and Privacy notice.

This site is protected by reCAPTCHA and the Google Privacy policy and Terms of service apply.

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in