Historic Scottish convenience shop brand heads into administration
MORE than 16,000 jobs are in jeopardy after convenience store chain McColl’s comfirmed it would collapse into administration.
The historic brand – founded in 1901 by Scotland footballer Robert Smyth McColl – broke the bad news after talks with lenders failed yesterday.
Supermarket giant Morrisons tabled a last-ditch bid for the business, which has 1100 shops across the UK.
But McColl’s confirmed “the lenders made clear that they were not satisfied that such discussions would reach an outcome acceptable to them”.
The company will appoint administrators from PwC in an effort to “preserve the future of the business and to protect the interests of employees”.
It is understood that EG Group, the filling station giant whose owners bought Asda last year, are favourites to buy the company and a deal could take place as soon as Monday.
McColl’s has struggled in recent years with soaring costs due to supply chain disruption, inflation and massive debt.
It had held talks with creditors in the hope of extending its loans. Morrisons’ rescue deal would have kept the business running, absorbed its £100million-plus debts and taken on the pension scheme.
McColl’s operates hundreds of shops under the Morrisons Daily brand.
Shares in McColl’s were suspended earlier this week after the company delayed the publication of its latest financial results due to its financing talks.
The trustee of McColl’s Pension Schemes urged any new owner to protect the schemes, which have 2000 members.
McColl’s began life as RS McColl when its founders opened a sweet shop in the south side of Glasgow.