16,000 jobs at risk as McColl teeters on the brink Business

McColl’s is set to bring in administrators after the convenience store chain admitted the move was “increasingly likely”, putting 16,000 jobs at risk.

The retailer insisted no decision had been made and was still in talks to secure emergency funds to keep it afloat.

A collapse would make it one of the biggest retail insolvencies since the bankruptcy of fashion chains Debenhams and Sir Philip Green, including Topshop.

McColl’s has 1,100 convenience stores and newsagents across the UK and employs 16,000 people.

More than 200 of its stores sell under the Morrisons Daily brand, with the supermarket keeping a close eye on its bailout talks.

McColl’s is in talks with lenders over a deal after being hit by supply chain issues and rising inflation.

He raised £30m from shareholders in a cash call just eight months ago.

Earlier this week, the retailer warned that its shares were going to be suspended because it could not get its accounts cleared by auditors.

McColl’s said an administration’s goal would be to secure the sale of the business and “secure the interests of creditors and employees.”

An administration could also mean that retirees will be disadvantaged as well as current employees, sources said.

The news, first reported by Sky News, came in response to media speculation about his future.

McColl’s faced product shortages towards the end of last year, which weighed on the company’s day-to-day costs. It has also been hammered by shortages of truck drivers and warehouse workers.

The company added, “We remain in discussion regarding potential financing solutions for the business to resolve short-term funding issues and create a stable platform for the future of the business.”

When Debenhams went bankrupt after last-ditch efforts to save the struggling chain of stores, 12,000 jobs were affected. Sir Philip Green’s retail business Arcadia employed 13,000 people when it entered administration.

More about this article: Read More
This notice was published: 2022-05-05 17:50:56

Leave a Reply

Your email address will not be published. Required fields are marked *