Morrisons has purchased symbol group retailer McColl’s for £190.1 million, administrator’s documents have revealed.
According to PwC, the supermarket’s rescue package for its convenience and wholesale partner credited to £182.1 million, with a further £8 million to pay unsecured creditors.
This follows the Big 4 grocer winning a battle against rival Asda’s owners EG Group (termed ‘Party A’ in the administrator’s letter) to rescue the symbol group retailer , taking it out of pre-pack administration on 9 May.
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The document revealed, had administrators been officially appointed 6 May, EG Group’s offer would have been accepted.
PwC’s official court appointment on 9 May gave Morrisons time to increase its bid over the weekend, resulting in both parties submitting final offers by 6.30pm on Sunday 8 May.
“Any buyer would need to have the capacity to supply the entire store estate, possibly in a short space of time,” the PwC document noted.
“All parties realistically capable of doing this had already been approached.”
However, administrators said while Party A’s offer was “materially higher” than that of Morrisons, the total dividend for unsecured creditors was estimated to be up to 50% higher under the supermarket’s proposal given Morrisons’ existing creditor balance.
Administrators added that both Party B and Party C were involved in rescue talks, but neither were able to make firm offers.