McColl’s collapses, putting 16,000 jobs at risk Business

McColl’s collapsed in administration, with Asda owners having to buy the struggling convenience store chain.

The retailer has officially appointed insolvency experts at PwC after its lenders rejected a last-minute bailout deal from Morrisons, which supplies its groceries.

It’s unclear how many of McColl’s 1,100 stores and 16,000 jobs will be saved and what the implications will be for his pension plans.

“The board unfortunately had no choice but to place the company into administration in the hope that it intended to implement a sale of the business to a third-party buyer as soon as possible. “McColl’s said.

The Issa brothers, who control Asda, may seek to buy McColl’s through their EG Group petrol station empire, Sky News has reported.

“While constructive discussions with the company’s main wholesale supplier to find a solution with them to the company’s financing problems and create a stable platform in the future had made significant progress, the lenders have made it clear that they weren’t convinced these discussions were going to be acceptable to them,” McColl’s added.

The convenience store chain warned on Thursday that it was “increasingly likely” to fall into administration following financial difficulties.

Its shares were also suspended from the London Stock Exchange.

Depending on the shape of a final deal, McColl’s could become one of the biggest retail insolvencies since fashion chains Debenhams and Sir Philip Green, including Topshop, went bankrupt.

The company, which started as a cigarette vending machine business, has been hit by supply chain issues and rising inflation. He raised £30million from shareholders in a cash call just eight months ago.

Over 200 of its stores sell under the Morrisons Daily brand.

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This notice was published: 2022-05-06 12:27:28

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