McColl’s collapses into administration as EG Group seeks to trump Morrisons’ approach

McColl’s said it has appointed PwC as administrators after its lenders appear to have vetoed the approach made overnight by Morrisons to save the business. 

In a statement, McColl’s said its banks had declined to extend the waiver on its covenants and, despite the ongoing discussions with Morrisons, “had made clear that they were not satisfied that such discussions would reach an outcome acceptable to them”.

McColl’s said PwC expected to implement a sale of the business out of administration to a third party “as soon as possible”. 

Minutes after the administration announcement, it was first reported by Sky News that EG Group, the petrol forecourt giant owned by Asda owners the Issa brothers, is attempting to buy McColl’s in a pre-pack deal. 

Morrisons’ approach had dealt with McColl’s as a solvent business and was expected to keep open as much of the c-store specialist’s 1,100-strong store estate as possible.

Having now entered administration, the roles of McColl’s 16,000 staff may be at risk.

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