McColl’s Retail Group has admitted that it is ‘increasingly likely’ that the struggling convenience store retailer will have to call in administrators unless a rescue deal can be found.
In a notice which went out to the London Stock Exchange on Thursday evening, the group stated that “unless an alternative solution can be agreed in the short term, it is increasingly likely that the group would be placed into administration.”London Stock Exchange
Read more: McColl’s shares set to be suspended from London Stock Exchange
Responding to press speculation, McColl’s revealed that it “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.
It emphasised that “no decision has yet been made”.
This would see the retail group being sold to a third-party purchaser, securing the interests of creditors and employees.
McColl’s recently warned that 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 convenience chain – which employs around 16,000 people – has been facing a number of financial difficulties over recent months, leaving thousands of jobs up in the air. According to Sky News, McColl’s could call in administrators as soon as Friday.
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2 Comments. Leave new
As I have said numerously, doing business with Morrisons Convenience Stores is the kiss of death.
I agree Bob, the company has been run by a shambolic management team, who care more about themselves rather than who works for them. Signed up to massive contracts with Subway, brought 300 shops from the co-op approximately half now gone.
Co-op pulled a blinder with cleansing their asset disposal list, now spending money they don’t have to bring in another format with Morrisons. Excessive amount of area and regional management all sitting around trying to justify their role.
If you are 55 or older look at putting your pension pot elsewhere.
Thank the Lord I saw the light.