53 McColl's convenience stores in Greater Manchester under threat as firm on brink of collapse

manchestereveningnews.co.uk:

Some 53 McColl's convenience stores in Greater Manchester are under threat of closure after the chain confirmed it could fall into administration.

The company, which is listed on the London Stock Exchange, employs about 16,000 people, or roughly 6,000 on a full-time equivalent basis and has more than 1,100 convenience shops across England, Scotland and Wales.

But last night the firm said it was 'increasingly likely' it could fall into administration. McColl's has been in discussions with potential lenders to shore up the business, which struggled badly during the pandemic due to supply chain issues, inflation and a heavy debt burden.

In a statement in which it described itself as 'the UK’s leading community retailer', a representative said: "As previously disclosed on April 25 2022, the group remains in discussions regarding potential financing solutions for the business to resolve short-term funding issues and create a stable platform for the business going forward. Read more: Woman left with horrifying 'chemical burns' and huge bald patch after getting hair bleached "However, whilst no decision has yet been made, 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. "Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the group’s ordinary shares." The spokesman said a further update would be made 'as and when appropriate'.