Morrisons will be putting 1,300 jobs at risk of redundancy as it moves to close 132 loss-making McColl’s stores.
The news came as the supermarket chain set out its plans for the convenience store business, which it rescued from administration earlier this year in a £190m rescue bid which saved around 16,000 jobs at the time.
McColl’s interim ceo Karen Bird and cfo Giles David will also be stepping down following a short period of handover.
Morrisons also outlined plans to speed up the existing conversion programme as it aims to convert the “substantial majority” of McColl’s branches, bringing the total number of Morrisons Daily stores to more than 1,000 within two years.
Of the remaining McColl’s stores, 132 show “no realistic prospect of achieving a breakeven position in the medium term”. Although some of these loss-making stores will be able to “return to profitability over time”, the majority will be closed over the remainder of this year, putting around 1,300 jobs at risk.
Every affected colleague will be offered alternative employment either at a local store or in another part of the business.
Morrisons chief executive, David Potts said: “We are now able to begin the urgent journey to transform McColl’s into a viable, well-invested and growing operation”.
“I’m confident that the McColl’s conversions, combined with the increased competitiveness that will be unlocked through investment and synergies, will make Morrisons a growing force in the important convenience market in the years to come.”
Morrisons convenience, online and wholesale director Joseph Sutton admitted that Morrisons has a “great deal of work to do” but said there was no question that McColl’s is a “business with strong potential”.
He said: “We very much regret the proposed closure of 132 loss-making stores but it is, very sadly, an important step towards the regeneration of the business”.
The news follows last week’s announcement that the Competition and Markets Authority cleared the acquisition after Morrisons said it would sell 28 stores from McColl’s existing estate.
