Convenience store chain looks like it will go into administration

STRUGGLING convenience store business McColl’s has confirmed it could fall into administration.

The retailer, which has branches across our region, has been in discussions with potential lenders to shore up the business, which struggled badly during the pandemic due to supply chain issues, inflation and a heavy debt burden.

The business has some 16,000 employees, the majority of whom are part-time, a spokesman said.

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 shortterm 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.’