UK convenience chain McColl collapses, putting 16,000 jobs at risk


McColl’s, a British convenience store chain, has confirmed that it has collapsed into government, putting 1,100 stores and 16,000 workers at risk.

The troubled retailer met with the lender on Friday morning hoping that the lender could extend the loan agreement.

Supermarket giant Morrisons, a major wholesale partner, also made a final non-business effort.

However, the company confirmed that “the lenders have revealed that they are not satisfied with the outcome of such discussions being acceptable to them.”

The company said it plans to appoint a manager from PwC to “maintain the future of the business and protect the interests of its employees.”

The company said it hopes to help managers “sell their business to third-party buyers as soon as possible.”

Morrisons is still understood to be interested in the acquisition, but Sky News reports that the vestibular giant EG Group is interested in trading.

At the beginning of Friday, Morrisons took over the business as a going concern, absorbed over £ 100 million in debt and signed a relief agreement responsible for the company’s pension system.

The two businesses are major partners, and McColl operates hundreds of convenience stores under the Morrisons Daily brand.

McColl’s has been struggling financially in recent years after witnessing rising costs due to supply chain disruptions, inflation, and its heavy debt burden.

On Thursday evening, McColl’s said he was discussing a “potential funding solution” to solve the funding problem.

McColl’s shares were suspended earlier this week after the company postponed the latest earnings announcement to negotiate funding.

PA media

follow

Posted on