Convenience store group warning administration could be on cards

Convenience store group McColl’s has said it could fall into administration, leading to the potential closure of dozens of shops across Tayside and Fife.

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

It said that unless those talks are successful, it is “increasingly likely the group would be placed into administration”.

The company operates more than 25 stores across Courier Country, with five in Dundee.

In a statement in which it described itself as “the UK’s leading community retailer”, the company said: “As 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 going forward.

“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 that the group would be placed into administration.”

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

Earlier this week, it was revealed the group was set to be suspended from the London Stock Exchange as bosses said it would be unable to get its 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 emptyhanded under rescue efforts.

The group runs more than 1,100 convenience shops across the UK.

McColl’s is in talks with potential investors.