McColl’s Retail Group has said it was left with other choice than to place the company into administration as it looks to “protect creditors, preserve the future of the business and to protect the interests of employees”.
The convenience retailer announced last month that it was talking to its lenders regarding potential financing solutions to resolve short term funding issues and to create a stable platform for the business. It also revealed that its Easter trading performance was weaker than expected.
In this latest statement, McColl’s said its senior lenders had declined to further extend the waiver of the company’s banking covenants, which has now expired.
It had been reported last week that Morrisons had put forward a rescue plan. McColl’s is already working with the supermarket through the operation of hundreds of smaller shops under the Morrisons Daily brand.
McColl’s has now appointed PwC as administrators in the expectation that it intends to implement a sale of the business to a third-party purchaser. Asda owner EG Group has also entered the fray.
The administrators are now understood to be considering improvements to bids from both Morrisons and EG Group.
