High street retailer McColl’s looks increasingly likely to be saved from the administrators (Mike Abrahams/McColl’s/PA)
(Picture: PA Media)Morrisons has tabled a last-minute bid to rescue its convenience store chain partner McColl’s from the administrators in a deal that could save 16,000 jobs.
The bid would also allow most of the 1,300 high street stores to stay open while the supermarket group takes on McColl’s pension liabilities and its £170 million debt.
It was presented last night by PwC just as McColl’s admitted it faced the jaws of the administrators and would be forced to shutter stores. Earlier this year, McColl’s received a takeover approach from petrol station giant EG Group that ultimately fell through.
Morrisons is already in partnership with McColl’s for more than 200 Morrisons Daily convenience stores.
Last year, McColl’s raised £30 million from shareholders to boost its presence through its partnership with Morrisons, but said that the business was still reeling from being hit by diminished footfall in the coronavirus pandemic.
Those familiar with the situation said that they expect the deal to receive a “favourable reaction” from the McColl’s board.
Just days ago, McColl’s stock was suspended after the company admitted that its ongoing emergency funding talks mean it will miss the deadline to file annual accounts.
At the end of March McColl’s announced that its chief executive Jonathan Miller was to step down.
Late last year, McColl’s warned investors that supply chain disruption had been a “major constraint” to trading.
Morrisons and McColl’s would not comment on the deal.
