McColl’s has fallen into administration after a last-minute rescue deal from Morrisons fell through.
The convenience retailer had warned last night (5 May) that it was on the brink of calling in administrators unless it could secure a “financing solution”.
McColl’s currently operates 1,100 stores in the UK and employs 16,000 people.
In a statement to the stock exchange McColl’s said: “In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration, appointing PriceWaterhouseCoopers LLP as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible.”
However, reports suggest Asda co-owner EG Group, which is owned by the billionaire Issa brothers, could strike a deal to rescue the bulk of the company.
