The Press and Journal (Aberdeen and Aberdeenshire)
Jobs on line as McColl’ s chain faces collapse
Scores of people across the north and north-east could be left without a job after McColl’s called in administrators.
The convenience store group confirmed it has appointed PriceWaterhouse Coopers after being left with “no choice” after discussions with its lenders collapsed yesterday as creditors refused to extend a deadline for the retailer to find more cash.
McColl’s is a stalwart of the high street and is one of Britain’s biggest convenience chains employing around 16,000 people.
It currently has 36 shops across the north and northeast in locations including Aberdeen, Kemnay, Ellon, Huntly, Buckie, Peterhead, Elgin, Inverness and Forres.
The convenience store business said on Thursday that it was looking “increasingly likely” it could tumble into administration, putting the future of 1,100 shops at risk.
The company said in a statement to the London Stock Exchange: “In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration, appointing PriceWaterhouseCoopers as administrators, in the expectation that they intend to implement a sale of the business to a thirdparty purchaser as soon as possible.”
It is understood that Morrisons could be set to offer a lifeline with talks of a rescue deal under way.
A rescue deal would also take on the business as a going concern, absorb its debts of more than £100 million and take responsibility for the company’s pension scheme.
A spokesperson for the trustees of the McColl’s Pension Schemes warned staff could miss out on payments following administration and urged any new owner to protect the schemes.
The spokesperson said: “The pension schemes are significant stakeholders in the company, and the trustees call on all potential bidders to make clear that they will respect the pension promises made to the 2,000 members by McColl’s and its subsidiaries.”
McColl’s is an important partner of Morrisons, operating hundreds of smaller shops under the Morrisons Daily brand.
McColl’s also reportedly received a takeover approach last month from petrol stations giant EG Group, and it is understood they are still interested in a deal.
Andrew Turnbull, the Robert Gordon University senior lecturer in retail and marketing, said: “McColl’s business model is, in fact, workable.
“The tie-up with Morrison’s represented a partnership that was able to compete on local high streets with other convenience operators, including Tesco Express and Sainsbury Local.”