Convenience store firm McColl's on the brink of collapse

manchestereveningnews.co.uk:

Convenience store firm McColl's is on the verge of collapse, putting thousands of jobs at risk. The firm, which has dozens of shops across Greater Manchester, has admitted it is 'increasingly likely' that the group would be put into administration.

It has been in talks with potential lenders to resolve short term funding problems but has admitted administration is looking likely.

The business 16,000 employees, the majority of whom are part-time, a spokesman said. McColl's encountered problems 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 for the firm 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 : Pedestrian 'hit by car' and rushed to hospital after crash on major Manchester road "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'.