Jobs have been saved in two convenience stores in Paisley after supermarket giant Morrisons won a battle to take over the collapsed McColl's chain.
The firm entered administration on Friday putting a number of local jobs at risk in the town.
But an eleventh hour rescue from Morrisons looks to have salvaged what would have been a devastating blow for both the shop at the County Place in the town centre and the Foxbar Road store.
Around 1100 stores and 16,000 jobs were at risk across Scotland.
Retail trade union Usdaw has welcomed the intervention of supermarket giant Morrisons in rescuing convenience retailer McColl’s.
They are now seeking assurances for the future of staff along with trade union recognition to give them a voice in the business.
Joanne McGuinness – Usdaw National Officer said: “It is great news that Morrisons has been successful in their bid to buy McColl’s out of administration and it will be a huge relief for the staff. We are now seeking urgent discussions with Morrisons to help secure the future for the staff.
“McColl’s was a non-unionised business, which meant their staff had no real voice in the future of the business.
"Usdaw has a long-standing and productive relationship with Morrisons and we will be looking to extend trade union representation to all staff in McColl’s.”
It seems Morrisons saw off competition from EG Group, the petrol station operator, in a package that will see 1100 McColl’s stores remain open and 16,000 workers keep their jobs.
The deal will be structured as a pre-pack administration, meaning Morrisons will buy McColl’s immediately after it enters insolvency proceedings overseen by Price Waterhouse Coopers (PwC).
Morrisons already has a partnership with McColl’s via its 200 Morrisons Daily convenience stores.
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When the administration process is complete, it will make it the largest insolvency in the UK retail sector by size of workforce since the collapse of Edinburgh Woollen Mill Group in 2020.
McColl’s lenders had rejected an initial offer from Morrisons on Friday that would have seen it take on the firm’s debts and repay them over time.
The bid from Morrisons – the sole supplier to McColl’s – would have protected the ‘vast majority’ of staff and stores as well as its £141million pension plan.
But Morrisons returned yesterday with an improved deal that would see the lenders repaid in full immediately, satisfying one of their key demands, although the details are unclear.
Morrisons’ status as a major creditor of McColl’s is also understood to have been influential.
An announcement is expected to be made by PwC this week.
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