McColl’s employs 16,000 employees – most of them part-time – across more than 1,100 stores
Struggling convenience store chain McColl’s has admitted it could go live.
Sky News reported on Thursday (May 5) that the company could call administrators as early as Friday, May 6, according to an announcement from the retailer.
McColl’s has been in talks with potential lenders to help shore up the company, which has been struggling during the pandemic due to supply chain challenges, inflation and debt burdens.
The spokesman said the company employs 16,000 employees, the majority of whom are part-time.
Here’s everything you need to know about it.
What is McColll?
McColl’s Retail Group is a British chain of newspaper and convenience stores operating under the names Morrisons Daily and McColl’s (for convenience stores), Martin’s (for newsstands and pound shops) and RS McColl in Scotland.
The company operates more than 1,100 convenience stores in England, Scotland and Wales.
It was founded in Glasgow in 1901 and serves about five million people a week, according to its website.
Why is it difficult?
Teresa Wickham, a former director of Safeway, told the BBC’s Today programme, that McColl’s was “having a hard time, especially with Covid-19”.
She said the pandemic comes at a time when the company is transitioning from typical convenience stores to offering more fresh fruit through an alliance with Morrisons supermarket.
Wickham says the stores that have done this have performed well as shopping habits shift to more local produce during the coronavirus crisis, but the chain lacks investment and has only a small percentage of stores. convert.
In 2021, McColl’s was also accused by the government of not paying the minimum wage to some of its employees.
It claimed the underpayments were due to past errors and staff were reimbursed in a timely manner, but was ordered to refund the amount as well as a £3.2million fine for breaches such as withholding. deduct wages for uniforms and expenses, or fail to pay the correct apprenticeship rate.
Capability is management like?
McColl’s has said that unless negotiations with the lenders can be successful, the group will “increasingly be forced to run.
In a statement, a representative said: “As previously revealed on April 25, 2022, the team is still discussing potential corporate financing solutions to address funding issues. short-term and create a stable foundation for business in the future.
“However, while no decision has been made yet, McColl’s confirms that unless an alternative can be agreed on shortly, it is likely that the group will be brought into administration with the goal of achieving this goal. obtain the sale of the group to a third-party buyer and secure the interests of creditors and employees.
“Even if a successful outcome is achieved, it is likely to result in little or no value attributed to the group’s common stock.”
Asked about Sky News’ suggestion that administrators could be called as early as Friday, they said there would be no further comment beyond the initial statement and that a further update would be made. “when appropriate”.
On May 5, retail insiders said McColl’s situation remained stable, but falling into insolvency was now more likely than not.
Can McColl be saved?
According to Sky News, an industry insider has said that a rescue deal is still possible and that continued discussions regarding McColl’s future could result in the appointment of the administrators being postponed until later. this week.
The group’s shares were suspended on the London Stock Exchange earlier this week after executives said they would not be able to sign the accounts in time.
The company’s shares fell sharply when it was announced last month that negotiations with lenders and banks were likely to leave shareholders empty-handed.
Meanwhile, Sky News has reported that Morrisons has proposed to McColl’s lenders a proposal in which the supermarket would inject capital.
According to insiders, the idea has yet to gain traction, but a revised version may appear in the future.
https://www.nationalworld.com/business/mccolls-convenience-stores-administration-share-price-news-shop-collapse-morrisons-deal-3682808 McColl’s: its convenience stores will open