Morrisons and Asda bid to save McColl's convenience stores
Last-ditch effort to save 1,100 local shops from closure
Last updated 6th May 2022
Convenience store chain McColl's has fallen into administration today (Friday 6th May) - but there could be a last-ditch deal to save the shops.
The business has 1,100 branches including ones in Amesbury, Netheravon, and Salisbury, employing around 16-thousand people.
Of its UK branches 200 of them are trading under the Morrisons Daily name.
It's understand the proposals put forward by Morrisons protect the pension scheme, and would preserve most staff.
But the co-owners of Asda are expected to agree a deal with administrators that would rescue the bulk of the company.
The Issa brothers' EG Group - the petrol station operator - is reported to be waiting in the wings and a deal could even be concluded later today.
The McColl's convenience shops, like the one Netheravon, are an important and integral part of the rural community.
McColl's itself describes its business as providing: "...a great range of quality everyday products and services, close to where people live, and available when they need them."
McColl's said in a statement:
"In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably... 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 third-party purchaser as soon as possible."
McCOLL'S & MARTIN'S: LOCAL SHOPS AND NEWSAGENTS
The Martin's chain of newsagents was acquired by McColl's in 1998 and further consolidated into the McColl's local convenience shop brand by 2005.
The spokesman for McColl's said a further update would be made "as and when appropriate".
Asked about a report by Sky News that administrators could be called in as early as Friday, he said there would be no comment beyond the statement issued on Thursday.
Earlier this week, it was revealed the group was set to have its shares suspended from the London Stock Exchange as bosses said they 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 that talks with its lenders and banks would likely leave shareholders empty-handed under rescue efforts.