McColl’s Retail Group has addressed reports, which claimed it was looking for fresh funding to keep the business afloat.
The retailer, which operates 1,100 stores across Britain – with about 200 of them trading under the Morrisons Daily format, confirmed it remains in ongoing discussions with its lending banks towards a longer-term agreement.
McColl’s said: “The group has received the necessary agreement to roll forward its financial covenant test periodically, and continues to receive credit support from its key commercial partner to enable these discussions.
“The group continues to believe that a financing solution will be found that involves its existing partners and stakeholders. A further update will be made as and when these discussions conclude.”
The statement comes after McColl’s warned its 2022 profit would be “slightly behind” current expectations. The retailer expects profits of between £20m and £22m, down from a previous forecast of £27m. McColl’s said it is starting to experience strengthening margin as impulse product sales recover, and has taken further mitigating actions, including a full review of pricing and costs.
