Fears have been raised over local jobs following reports convenience store chain McColl’s is on the brink of collapse.
The firm, which has more than 1,300 stores in the UK, is understood to be working with advisors to find a buyer to help the business stay afloat.
The retailer has three stores in Dumbarton, one in Alexandria and two in Helensburgh providing a lifeline service to residents as well as employing local people.
Around 200 of its stores trade under the Morrisons Daily brand – with the supermarket said to be keeping a close eye on its rescue talks.
According to a report, the retailer has a matter of weeks to secure new funding, with millions of pounds of its bank debt being sold to hedge funds.
MSP Jackie Baillie said: “It is concerning to hear that McColl’s is in such a challenging financial position.
“I am particularly worried about the consequences of closure on hard-working staff who could very suddenly be left without an income while we are facing a cost of living crisis.
“We all know that the Covid pandemic has put pressure on local businesses and has also changed our shopping habits.
“Newsagents like McColl’s were there for people when severe restrictions were imposed and I hope they can continue despite these pressures.”
EG Group, the petrol stations giant controlled by Asda owners Mohsin and Zuber Issa and the private equity firm TDR Capital, is said to have held discussions about making an offer for McColl’s but decided against doing so last week.
The company, which is listed on the London Stock Exchange, employs around 6,000 full-time staff and raised £30million from shareholders in a cash call just six months ago.
Wm Morrison, which agreed to a £7billion sale to the private equity firm Clayton Dubilier & Rice in 2021, is understood to be monitoring McColl’s situation closely with a view to possibly acquiring hundreds of its stores out of insolvency. However, the supermarket is not believed to be in active discussions about a complete takeover of the company. In November, McColl’s announced that it would expand the number of Morrisons Daily conversions from 350 to 450 within a year.
If McColl’s fails to secure new funding and is forced into administration, it would be the largest retail collapse since the Edinburgh Woollen Mill Group and Debenhams in 2020.
