Morrisons bids to save McColl’s from collapse

The bid would also allow most of the 1,300 high street stores to stay open while the supermarket group takes on McColl’s pension liabilities and its £170 million debt.

It was presented last night by PwC just as McColl’s admitted it faced the jaws of the administrators and would be forced to shutter stores. Earlier this year, McColl’s received a takeover approach from petrol station giant EG Group that ultimately fell through.

Morrisons is already in partnership with McColl’s for more than 200 Morrisons Daily convenience stores.

Last year, McColl’s raised £30 million from shareholders to boost its presence through its partnership with Morrisons, but said that the business was still reeling from being hit by diminished footfall in the coronavirus pandemic.

Those familiar with the situation said that they expect the deal to receive a “favourable reaction” from the McColl’s board.

Last night the high street retailer said that without any fresh funding in the short-term, the business would likely “be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees”.

Just days ago,  McColl’s stock was suspended after the company admitted that its  ongoing emergency funding talks mean it will miss the deadline to file annual accounts.

At the end of March McColl’s announced that its chief executive Jonathan Miller was to step down.

The 30-year veteran was replaced on an interim basis by Angus Porter, a non-executive chairman at business, as McColl’s said it would hunt for a new permanent boss. Giles David, chief financial officer, also took an expanded role at the company.

Late last year, McColl’s warned investors that supply chain disruption had been a “major constraint” to trading.

Morrisons and McColl’s would not comment on the deal.