Convenience store group McColl’s said the prospect of administration is “increasingly likely” if it cannot find a solution to its funding difficulties.
The acknowledgment that an administration is on the cards came after Retail Week revealed the possibility yesterday, as well as a decision to pause the rollout of the Morrisons Daily format as it sought to conserve cash.
McColl’s said discussions are ongoing ”regarding potential financing solutions to resolve short term funding issues and create a stable platform for the business going forward”.
However, it warned: “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.”
McColl’s said it will provide updates on the situation “as and when appropriate”.
McColl’s has 1,100 branches and employs 16,000 people. It has experienced difficulties for some time and warned on profits a fortnight ago.
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