Morrisons proposes rescue plan for McColl’s
Convenience retailer McColl’s has said it is looking increasingly likely that it could fall into administration as it continues to talk to lenders about a new finance deal.
However, Sky News has reported this morning that the Morrisons supermarket chain has put forward a rescue plan that would preserve the majority of the retailer’s 16,000 jobs. The move would also include McColl’s lenders being taken on in full and its pension scheme being protected.
McColl’s is already working with Morrisons through the operation of hundreds of smaller shops under the Morrisons Daily brand,
The retailer revealed last month that it was in discussions regarding potential financing solutions to resolve short term funding issues and create a stable platform for the business. It also said it had achieved a weaker than expected Easter trading performance following reduced consumer spending and the impact of supply chain disruption across the retail sector.
Earlier this week, McColl’s said it was delaying the publication of its annual report for the year to 28 November as it needed to conclude discussions with key stakeholders on a solution for the business.
In a statement yesterday, McColl’s said: “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. 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.”
McColl’s has an estate of over 1,100 managed convenience stores and newsagents.
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