McColl’s, a convenience store chain with locations throughout Bucks, has confirmed that it will go into administration, putting 1,100 stores and 16,000 employees at risk. On Friday morning, the troubled retailer met with its lenders in the hopes of extending their loan agreements.
Morrisons, a major wholesale partner, has also made a last-ditch effort to acquire the company. The company did, however, confirm that “the lenders made clear that they were not satisfied that such discussions would result in an outcome acceptable to them.”
Station Road in Loudwater, Holmer Green Road in Hazlemere, and Church Road in Lane End are among their local stores. Beaconsfield New Town, Chalfont St Peter, Bourne End, Princes Risborough, and Aylesbury all have stores.
The company will now appoint PwC administrators to “preserve the future of the business and protect the interests of employees,” according to the statement. The company expressed its hope that the administrators will assist in “immediately implementing a sale of the business to a third-party purchaser.”
Morrisons is reportedly still interested in a takeover, while Sky News reports that forecourt giant EG Group is also interested.
Morrisons had proposed a rescue plan earlier on Friday, in which the company would be taken over as a going concern, its debts of over £100 million would be absorbed, and the company’s pension scheme would be taken over.
McColl’s operates hundreds of convenience stores under the Morrisons Daily brand, and the two companies are major partners. McColl’s has had financial difficulties in recent years as a result of rising costs caused by supply chain disruptions, inflation, and its large debt load.
McColl’s announced on Thursday evening that it was in talks with “potential financing solutions” to resolve its funding problems.