British retailer McColl's CEO Miller steps down amid financial woes (updated)

MccollS Retail

24/03/2022 10:59

* CEO Jonathan Miller steps down
    * Talks with lenders on funding options ongoing
    * McColl's shares slump 14%

 (Adds chairman comment, background)
    By Muhammed Husain
    March 24 (Reuters) - The chief executive officer of
Britain's McColl's  MCLSM.L , Jonathan Miller, stepped down on
Thursday, weeks after the cash-strapped convenience store chain
warned of lower annual profit, sending its shares tumbling 14%.
    Miller's exit comes as the group is in months-long talks
with lenders over new funding options and reports of pressure
from its supply partner Morrisons. urn:newsml:reuters.com:*:nL4N2V32MS
    "Jonathan and the board have agreed that now is the right
time to bring in a new chief executive to lead the business into
a new phase," said Executive Chairman Angus Porter.
    Miller, who is stepping down after more than 30 years at the
company, has been replaced by Chief Operating Officer Karen Bird
on an interim basis.
    McColl's, which operates more than 1,100 convenience stores
in Britain, has been grappling with supply chain issues that hit
product availability in its stores, and the company's
first-quarter results were weighed down by a surge of Omicron
cases.
    Shares of McColl's lost more than half their value in 2021.
    Sky News reported on Tuesday that supermarket group
Morrisons has appointed investment bank Houlihan Lokey to
explore options for its exposure to the retailer. urn:newsml:reuters.com:*:nL3N2VP3RB
    McColl's had declined to comment and Morrisons did not
respond to a request from Reuters for comment on the report.
    The convenience store chain last month forecast 2022 net
debt of roughly 100 million pounds, higher than last year.
McColl's 2020 adjusted core earnings were 57.9 million pounds. 
    Refinitiv data showed the company's credit score had sunk to
1, the lowest on a scale of up to 100, meaning it was highly
likely to default in the next year.
    The Brentwood, UK-based retailer said in a statement on
Thursday its talks with lenders were going on and it believed a
financing solution would be found involving its existing
partners and stakeholders. 

 (Reporting by Muhammed Husain in Bengaluru; Editing by
Subhranshu Sahu and Amy Caren Daniel)
 ((Muhammed.Husain@thomsonreuters.com;))