People in Carlton have spoken of the uncertainty surrounding the future of the McColl’s convenience store on their high street, saying if it came to the shop having to close this would have a 'big impact' and result in 'less people coming through the area'. It comes after the stricken chain said in a statement that the firm could enter administration.
There are at least 15 shops across Nottinghamshire, including a branch in Carlton Hill, which provides post office services. Shoppers hope the McColl’s chain can continue to trade - and they also spoke about the worst that could happen.
Carole Powell, 58, who lives near the shops in Carlton Hill, said she used McColl’s to pay her bills. Speaking of the difficult financial situation the company is faced with, she said: "It’s upsetting because I pay my TV licence and water there.
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"It’s such a shame, it’ll have a big impact on a lot of people, especially the elderly. They don’t use computers, that’s the only place they can go to the post office and pay bills."
Earlier this week, officials from McColl's said it was likely the group would be placed into administration, with the aim of agreeing a sale to a third party and securing the interests of creditors, unless an "alternative solution" could be agreed in the short term. But recent reports suggest the billionaire Issa brothers are poised to rescue the struggling chain when it enters administration.
With accountancy firm PwC set to be appointed as administrators, it's been suggested that a sale to the brothers' EG Group could happen soon after. The Issa brothers also co-own Asda - and the EG Group owns thousands of petrol stations and convenience stores across the UK, Ireland, Europe, Australia and the US.
According to reports, PwC are likely to be appointed as administrators when the courts reopen on Monday (May 9). Before news of this development came to light, Ms Powell spoke of the importance of McColl's to the local community in Carlton.
She said: “I try to support the smaller corner shops, if I can buy something from them, and avoid going to Tesco and places, I will. People don’t realise that if you don’t use them enough they close.
“McColl’s is very important. I go there once a fortnight to pay for things, I go to the post office, I go there to get the paper. People have a chat there, it’s incredibly important for elderly people and everyone in the community.”
Mohammed Masada, who owns the nearby Wise Owl discount store, said he, too, had felt the recent pressure on smaller businesses. He added: “Losing McColl’s will definitely affect the high street. There will be less people coming through the area, it’s an ongoing issue for everyone.
“I think the pandemic has done a lot of damage to everyone who owns a shop. It’ll definitely change the local area. I’ve felt the struggle too, it’s been quiet lately.”
Rose Wesson, 64, who lives locally to the area, explained she rarely used the Carlton Hill shops but visited McColl’s when she can. She believes that customers would simply visit the bigger stores nearby, like Tesco and Iceland, in the event McColl's had to close.
“I don’t think they should shut it down, because it’s a nice shop, it would be silly. I don’t think it’ll change much because people will just go to Tesco, I just see people going to the bigger stores because Tesco is only down the road.
“I do use McColl’s, not all the time, but I do use it. It sells what I need, and the post office being there is useful. There’s no other post office nearby so it would be difficult to get to another.”
There are 1,100 McColl's stores with up to 16,000 jobs at risk. Speaking previously, a representative for McColl’s said: “As previously disclosed on April 25, 2022, the group remains in discussions regarding potential financing solutions for the business to resolve short-term funding issues and create a stable platform for the business going forward.
“However, 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.”
