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Retail

Convenience Chain McColl's Says It Could Fall Into Administration

Convenience store chain McColl's has said it is increasingly likely that the group will be placed into administration, a move that could put thousands of jobs at peril.

The company statement was released after a Sky News reporter tweeted that McColl's, which has an extensive partnership with supermarket major Morrisons, could crash into administration as soon as Friday.

McColl's reiterated that it remained in talks on potential financing solutions to resolve short-term funding issues and create a stable platform for the business.

'An Alternative Solution'

"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," the company said.

"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," it added.

Morrisons Tie-Up

The group has a wholesale tie-up with Morrisons, Britain's fourth biggest supermarket chain.

The 1,100-store group, which runs McColl's and Morrisons Daily branded convenience stores as well as Martin's newsagents, employs about 16,000.

Earlier this week, McColl's said it was likely to request the listing of its shares be suspended on June 1 as it would not meet a deadline to publish its annual results by the end of May. Its CEO, Jonathan Miller, also recently stepped down.

News by Reuters, edited by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

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