McColl's stores across Wales could face closure as the struggling convenience store business confirmed it is on the brink of collapse. The retailer, which struggled badly during the pandemic due to supply chain issues, inflation and a heavy debt burden, said this week it could fall into administration.
It runs more 1,000 stores across the county, with around 20 in Wales, and employs around 16,000 people. The chain said that unless talks with potential lenders are successful, it is "increasingly likely that the group would be placed into administration". There are reports this could be as soon as today.
There are several stores in Wales including in Cardiff, Swansea, Newport, Mold and Wrexham. Many house local post offices.
A spokesperson for the company 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.
"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".
Earlier this week, it was revealed McColl's was set to have its shares suspended from the London Stock Exchange as bosses said they would be unable to get its accounts signed off by auditors in time.
