Bad news as McColl’s on brink of administration

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

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

it said that unless the talks are successful, it is ‘increasingly likely that the group would be placed into administration’.

the business traces its roots back to 1901, when footballer robert Smyth McColl opened the first rS McColl in glasgow. the business now has around 16,000 employees, the majority of whom are part-time, a spokesman said.

the group runs more than 1,100 shops across England, Scotland and Wales. in a statement, in which it described itself as ‘the uK’s leading community retailer’, a spokesman said: ‘As disclosed on April 25, 2022, the group remains in discussions regarding potential financing solutions to resolve short-term funding issues and create a stable platform for the business going forward.

‘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 that the group would be placed into administration with the objective of achieving a sale to a third-party purchaser and securing the interests of creditors and employees.’

Asked about a Sky news report that administrators could be called in as early as today, the spokesman refused to comment.

this week it was revealed the group was set to have its shares suspended from the london Stock Exchange as bosses said they would be unable to get its accounts signed off by auditors in time.