Mon, 09 May 2022 | ADMINISTRATION
Morrisons and EG Group have submitted bids for McColl's Retail Group, according to media reports.
The two retailers are said to be “locked in a two-way fight” after Morrisons put in a final last-minute offer on Sunday. According to the BBC, EG Group, has now met this bid with a revised proposal.
McColl’s, which has an estate of more than 1,100 managed convenience stores and newsagents collapsed into administration last week and was suspended from trading on the London Stock Exchange.
McColl's said in a statement: "In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably... left with no choice other than to place the company in administration, appointing PriceWaterhouseCoopers as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible."
After the announcement it was made, it was expected that the Issa brothers, who own EG Group which took over Asda in February last year, would agree on a deal with administrators and would rescue McColl’s. However, Morrisons, which already has a joint venture with McColl’s as the retailer runs its Morrisons Daily convenience stores, is understood to have agreed to take on McColl's debts and is said to be willing to pay McColl's lenders in full and straightaway.
Morrisons released a statement which said: “We put forward a proposal that would have avoided today’s announcement that McColl’s is being put into administration, kept the vast majority of jobs and stores safe, as well as fully protecting pensioners and lenders.
“For thousands of hardworking people and pensioners, this is a very disappointing, damaging and unnecessary outcome.”
The two bids are now said to match as according to reports, Morrisons is also prepared to take on McColl's pension commitments, and EG’s offer also now includes this.
The deadline was 18:00 BST on Sunday 9th May for full and final bids.
For administrations – “View the latest distressed UK businesses here.”
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