More than 100 convenience stores in the UK are set to close putting around 1,300 jobs at risk. It comes after supermarket giant Morrisons bought the McColl's retail chain in a £190 million rescue deal in May earlier this year.
The company has now revealed proposals to shut down 132 loss-making stores across the country, saying that there is "no realistic prospect of achieving a breakeven position in the medium term" at the branches.
Morrisons, which itself was bought in a £7 billion deal last year, said all 1,300 workers at risk from the closure plans will be offered roles elsewhere in the company. Joseph Sutton, Morrisons’ convenience, online and wholesale director, said: “We have a great deal of work to do but there’s no question that McColl’s is a business with strong potential. I’m confident that the combination of McColl’s conveniently located stores and great colleagues, together with Morrisons scale, brand, systems and fresh food expertise, will lead to a transformation of the business."
READ MORE: ASDA is selling unlimited drinks for £1 in 205 supermarkets until December
Of the store closures, 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. I am confident that McColl’s can, in the Morrisons family, once again become a growing, thriving and vibrant convenience business serving local communities across the UK.”
The company has not released details of where the closures will occur or what dates the affected stores are set to close.
McColl's plunged into administration in May this year, saying it hoped "to preserve the future of the business and to protect the interests of employees" by finding a new buyer. Morrisons secured its place as its new owner after reportedly beating petrol station powerhouse and Asda owner EG Group.
- READ NEXT:
- Furniture firm Made.com to appoint administrators with 700 jobs at risk
- Morrisons follows Tesco and issues storewide BAN ahead of Christmas
- Shopper flabbergasted when she finds hidden feature on trolleys in ASDA, Aldi, Tesco, Lidl, and Morrisons
- Aldi shopper says she'll 'stick with Tesco' after comparing supermarket prices
- Iceland boss urging shoppers to switch off oven to save over £400 a year
