Convenience store chain McColl’s went bust Friday in the wake of supply strains and weak consumer spending as inflation soars, putting at risk around 16,000 jobs.
McColl’s, which has about 1,100 stores across the UK selling food and household products, entered administration, whereby a troubled company calls on outside help to try and minimise job losses.
McColl’s said in a statement that its main lenders had refused further funding.
A last-ditch rescue attempt by supermarket giant Morrisons failed.
“We put forward a proposal that would have avoided… administration, kept the vast majority of jobs and stores safe, as well as fully protecting pensioners and lenders,” Morrisons said in a statement.
“For thousands of hardworking people and pensioners, this is a very disappointing, damaging and unnecessary outcome.”
McColl’s operates about 200 of its stores under the ‘Morrisons Daily’ brand.
“In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably… left with no choice other than to place the company in administration,” McColl’s said.
PricewaterhouseCoopers has been appointed as administrators.
McColl’s said it expected PwC “to implement a sale of the business to a third-party purchaser as soon as possible”.
The group’s share price was suspended on the London Stock Exchange prior to the announcement.
McColl’s last month revealed in a trading update that the company was being “impacted by reduced consumer spending and continued supply chain disruption across the industry”.
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