Supermarket group Morrisons has won a battle to rescue McColl’s, the convenience store and newsagent chain, and taken on all 16,000 staff members.
Morrisons beat a rival offer from EG Group, the petrol station empire, owned by the billionaire Issa brothers. Morrisons will pay off McColl’s£170m debts andtake on its 1,160 shops and pension schemes, with 2,000 members. The supermarket’s boss said the deal offered stability and continuity for the business, its staff and pensioners.
McColl’s was put into administration by PwC on Monday and was immediately sold to Morrisons. Rob Lewis, joint administrator and partner at PwC, said the deal provided “much needed certainty to McColl’s 16,000 staff after a period of understandable concern”.
Morrisons chief executive, David Potts, said: “Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders.
“This transaction offers stability and continuity for the McColl’s business and, in particular, a better outcome for its colleagues and pensioners.”
McColl’s ran into difficulties as it attempted to update the range of food it sold and came up against Covid-related supply chain problems.
When it emerged last week that the convenience chain store was close to collapse a bidding war began. Both Morrisons and EG Group filed final offers for the business on Sunday.
Source: bbc.com
