Morrisons reportedly won the battle to buy McColl’s chain of stores from abroad.

I got into a chain of stores administration on Fridayquestions the future of its 1,100 stores and 16,000 employees.

Sky News reported on Monday, Morrisons rebuffed owner Asda EG Group to negotiate an agreement under which it buys McColl’s, protecting its stores and jobs.

120 years old McColl’s struggled financially in recent years after witnessing rising costs due supply chain disruptioninflation and its large debt burden.

He entered the administration after talks with creditors failed. Lenders declined to extend the term for the seller to find more cash.

The Morrisons supermarket giant, which is a major wholesale partner and lender of McColl’s, has unveiled a recent attempt to buy a business that it said would “keep the vast majority of jobs and stores safe”.

McColl pension trustees have called on business secretary Quasi Quarteng to do everything possible to ensure that members of the pension system are well protected.

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.

They 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 promises made to 2,000 McColl’s members and its subsidiaries, and will not seek to break the link between schemes and 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 made to employees who have served the business loyally for many years and the risk of causing pension schemes to be reduced. ».

https://www.independent.co.uk/news/business/16-000-jobs-protected-as-morrisons-agrees-to-buy-mccoll-s-says-report-b2074626.html

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