Morrisons eyes newsagent McColl’s

MORRISONS has emerged as a potential buyer for beleaguered McColl’s.

The chain, which operates 1,100 newsagents and convenience stores and employs 16,000 staff, faces going bust within weeks. It warned investors late last year that supply chain distruption had been a ‘major constraint’ to trading, leading to gaps on its shelves.

McColl’s is working with advisers to find a buyer or investors willing to inject fresh capital to avoid administration, according to Sky News this weekend. It is due to report its annual results in March. Chief executive Jonathan Miller has said 2021 was ‘undoubtedly a tough year for the business’.

Its shares have fallen by 70 per cent in the past year and are hovering near record lows – closing on Friday at 7p. But sources told Sky News the shares are now effectively ‘worthless’.

The Issa family, who also own Asda and the EG petrol forecourt group, considered a bid but pulled out last week.

McColl’s declined to comment.