Some 53 McColl's convenience stores in Greater Manchester are under threat of closure after the chain confirmed it could fall into administration. The company, which is listed on the London Stock Exchange, employs about 16,000 people, or roughly 6,000 on a full-time equivalent basis and has more than 1,100 convenience shops across England, Scotland and Wales.
But last night the firm said it was 'increasingly likely' it could fall into administration. McColl's has been in discussions with potential lenders to shore up the business, which struggled badly 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 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.
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"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'.
But it has been reported Morrisons is considering plans to rescue McColl's. The supermarket chain's takeover would include repaying its lenders in full and protecting the vast majority of its 1,100 shops and 16,000, Sky News reports.
The stores in Greater Manchester
Rochdale
Albert Royds Street
Smith Street
Sutherland Road
Kenyon Lane
Bury
Walmersley Road
Ainsworth Road
Parkhills Road
Thatch Leach Lane
Manchester
Victoria Avenue
Lightbowne Road
Ducie Street
Stretford Road
Ellesmere Street
Hollyhedge Road
Peel Hall Road
Salford
Phoebe Street
Folly Lane
Hulton District Centre
Walkden Road
Bolton
Newbrook Road
St Helens Road
Tonge Old Road
Brownlow Way
Wigan
Carbank Street
Gadfield Grove
Atherton Road
Warrington Road
Wallgate
Marsh Green
Norley Hall Avenue
Clapgate Lane
Wigan Road
Trafford
Irlam Road
Flixton Road
Old Hall Road
Shaftesbury Avenue
Ashley Road
Stockport
Outwood Road
Redford Drive
Arundel Avenue
Stockport Road
Green Lane
Didsbury Road
Reddish Road
Manchester Road
Broadstone Road
Thorley Lane South
Gorton Road
Tameside
Haughton Green Road
Ashton Road
Astley Street
Oldham
Oldham Road
Hollins Road
