The well-known convenience store chain McColl’s is reported to be on the brink of collapse with some 16,000 jobs at risk. The chain, which has more than 1,300 branches, has a shop in Warton (pictured) as well as three outlets in Blackpool.
McColl’s shares dropped by 66 per cent to a record low of 2.35p yesterday (28th February) with warnings that earnings are set to miss targets for the year. McColl’s also confirmed it was in discussions with its lenders, following reports that it was scrambling to secure funding to stop itself going bust. McColl’s told investors that it continues to believe that a financing solution will be found that involves its existing partners and stakeholders.
According to a Sky News report, the retailer has a matter of weeks to secure this new funding, with millions of pounds of its bank debt being sold to hedge funds.
Asda owners the Issa brothers and the private equity firm TDR Capital are said to have held discussions about making an offer for McColl’s but decided against doing so last week. However, Wm Morrison is understood to be monitoring McColl’s situation closely with a view to possibly acquiring hundreds of its stores out of insolvency.