UK convenience chain McColl's says it could fall into administration (updated)

MccollS Retail

05/05/2022 18:01

(Adds details on company, background)
    May 5 (Reuters) - Struggling British convenience shop chain
McColl's  MCLSM.L  said on Thursday it was increasingly likely
that the group would be placed into administration, a move that
could put thousands of jobs at peril.
    The company statement was released after a Sky News reporter
tweeted that McColl's, which has an extensive partnership with
supermarket major Morrisons, could crash into administration as
soon as Friday.
    McColl's reiterated that it remained in talks on potential
financing solutions to resolve short-term funding issues and
create a stable platform for the business.
    "McColl's 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 and
securing the interests of creditors and employees," the company
said.
    The group has a wholesale tie-up with Morrisons, Britain's
fourth biggest supermarket chain.
    The 1,100-store group, which runs McColl's and Morrisons
Daily branded convenience stores as well as Martin's newsagents,
employs about 16,000.
    Earlier this week, McColl's said it was likely to request
the listing of its shares be suspended on June 1 as it would not
meet a deadline to publish its annual results by the end of May.
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 (Reporting by Aby Jose Koilparambil in Bengaluru; Editing by
Shailesh Kuber)
 ((abyjose.koilparambil@thomsonreuters.com; +919986528692;))