Store group warns of possible closures

CONVENIENCE store group McColl’s confirmed it could fall into administration, leading to the closure of dozens of shops.

The retailer, which operates five stores in Dundee, has been in talks with potential lenders to shore up the business, which struggled badly during the pandemic.

It said unless those talks are successful, it is “increasingly likely the group will be placed in to administration”.

In a statement in which it described itself as “the UK’s leading community retailer”, a representative 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.

“However, while 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 the group will be placed in to 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.”

The spokesman said further updates would be made “as and when appropriate”.

Earlier this week it was revealed the group was set to have its shares suspended from the London Stock Exchange after company bosses said they would be unable to get the retailer’s accounts signed off by auditors in time.

Shares in the company had already plunged as it reported last month talks with its lenders and banks would likely leave shareholders empty-handed under rescue efforts.

The group operates more than 1,100 convenience shops across Scotland, England and Wales.