Morrisons wins battle for McColl’s

Supermarket group Morrisons has won a battle to rescue McColl’s, the newsagent chain with 1,400 convenience stores, including in Oban, Caol, and Ardrishaig, and taken on all 16,000 staff members.

Morrisons beat a rival offer from EG Group, the petrol station empire, owned by the billionaire Issa brothers.

Morrisons will pay off McColl’s £170 million debts and take on its 1,160 shops and pension schemes, with 2,000 members.

The supermarket’s boss said the deal offered stability and continuity for the business, its staff and pensioners.

David Potts, Morrisons chief executive, said: ‘Although we are disappointed the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders. This transaction offers stability and continuity for the McColl’s business and, in particular, a better outcome for its colleagues and pensioners.’

Rob Lewis, joint administrator and partner, PwC, said: ‘The completion of this transaction provides much needed certainty to McColl’s 16,000 staff after a period of understandable concern following the group’s challenges over the past months. As well as saving thousands of jobs, this deal...will protect the pensions entitlements of so many people.’