McColl’s at risk of ‘collapse’: report

Convenience store chain McColl’s is on the “brink of collapse,” putting thousands of jobs at risk, Sky News reported Thursday.

It said that McColl’s, which has a network of more than 1,100 convenience stores and newsagents across the UK, “could call in administrators as early as Friday”, putting “thousands of high street jobs at risk”.

In a statement to the channel, McColls said it “confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the Group would be placed into administration with the objective of achieving a sale of the Group to a third-party purchaser”.

It added that even if a sale was successful, it is likely to result in the group’s ordinary shares having “little or no value”.

The chain says on its website that it employs over 15,000 people at its stores, some of which are branded as Morrisons Daily in a partnership with the supermarket chain.

Sky News reported that there could be interest in a partial takeover from Morrisons, as well as from EG Group, which operates petrol stations.

McColl’s said Tuesday that it would not publish its annual results by the end of May as intended, due to discussions “around a potential financing solution for the business”, and expected to request that the listing of its shares be temporarily suspended from June 1.

In a statement on April 25, McColl’s said that it has been “impacted by reduced consumer spending and continued supply chain disruption across the industry”.