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McColl’s retail chain has confirmed that it will collapse administrationwhich puts at risk 1,100 shops and 16,000 workers.

The troubled retailer held talks with its creditors on Friday morning in hopes that they would be able to renew their loan agreements.

The supermarket giant Morrisons, which is a major wholesale partner, also unveiled a recent attempt to close the business.

However, the company confirmed that “creditors have made it clear that they are not satisfied that such discussions will come to an acceptable outcome.”

Morrisons spoke at the last minute to save McColl’s (Ian West / PA) / PA wire

It says the company is now appointing administrators from PwC to “preserve the future of the business and protect the interests of employees”.

The company said it hoped the administrators would help “sell the business to a third-party buyer as soon as possible.”

It is clear that Morrisons is still interested in the takeover, while Sky News reports that the EG Group giant is interested in the deal.

Earlier on Friday, Morrisons unveiled a bailout deal that also takes over the business as a going concern, absorbs its debts of more than £ 100 million and takes responsibility for the company’s pension scheme.

The two companies are major partners, with McColl’s operating hundreds of stores under the Morrisons Daily brand.

In recent years, McColl’s is experiencing financial difficulties after witnessing rising costs due to supply chain disruptions, inflation and high debt burdens.

On Thursday night, McColl’s said it was negotiating “potential funding solutions” to address funding issues.

Shares at McColl’s were suspended earlier this week after the company postponed the publication of its latest financial results due to funding talks.

A spokesman for McColl’s pension scheme trustee warned that employees could miss payments after administration, and urged any new owner to protect the schemes.

Said: “Pension schemes are important stakeholders in the company, and trustees are urging all potential bidders to make it clear that they will honor the retirement pledges given to 2,000 McColl’s members and its subsidiaries and will not seek to break the link between the schemes and the company. ».

Proxies added: “The gap between the schemes and the sponsoring company through the previous package administration will be a serious breach of the pension promises given to employees who have served the business loyally for many years and the risk of causing pension schemes to be reduced. ».

https://www.standard.co.uk/news/uk/mccolls-administration-collapse-jobs-at-risk-morrisons-b998430.html

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