Morrisons beats off competition to save McColl’s stores

MORRISONS has beaten EG Group in a takeover battle for collapsed retailer McColl’s.

Bosses said all McColl’s staff will keep their jobs as the firm’s shops transfer to the new owner, while Morrisons will take over the company’s two pension schemes.

The convenience chain fell into administration on Friday, plunging the future of its 1,160 shops and 16,000 staff into doubt. It came after the UK’s fourth-largest supermarket chain and forecourt giant EG Group both tabled final offers on Sunday to secure a rescue deal for McColl’s.

EG – whose owners also run supermarket giant Asda – had initially been favourites to complete a rescue deal for McColl’s.

Morrisons’ early approaches had reportedly been rejected by lenders who preferred EG’s offer to instantly repay more than £160m in debts from McColl’s.

However, it is understood that Morrisons’ successful move will also repay the lenders in cash.

In a statement after the deal was announced, it said that “the secured lenders and preferential creditors will be paid in full with a distribution also expected to unsecured creditors”.

Morrisons had also originally proposed to only save the “vast majority” of job and stores, but improved this offer during the bidding process.