Morrisons has won a battle to buy struggling convenience store chain McColl’s out of administration, according to reports.
The convenience store chain fell into administration on Friday, putting the future of its 1,100 shops and 16,000 staff into doubt.
Sky News reported on Monday that Morrisons had fended off Asda owner EG Group to agree a deal that will see it buy McColl’s, protecting its stores and jobs.
The 120-year-old McColl’s has struggled financially in recent years after witnessing soaring costs due to supply chain disruption, inflation and its large debt burden.
It entered administration after discussions with lenders collapsed. Creditors refused to extend a deadline for the retailer to find more cash.
Supermarket giant Morrisons, which is a major wholesale partner and creditor to McColl’s, tabled a last-ditch effort to buy the business, which it said would have “kept the vast majority of jobs and stores safe”.
Trustees for the McColl’s pension schemes called on the Business Secretary Kwasi Kwarteng to do whatever he can to ensure pension scheme members are well protected.
A spokesperson for the trustee of the McColl’s pension schemes warned staff could miss out on payments following administration and urged any new owner to protect the schemes.
They said: “The pension schemes are significant stakeholders in the company, and the trustees call on all potential bidders to make clear that they will respect the pension promises made to the 2,000 members by McColl’s and its subsidiaries, and will not seek to break the link between the schemes and the company.”
The trustees added: “Breaking the link between the schemes and the sponsor company, by way of a pre-pack administration, would represent a serious breach of the pension promises made to staff who have served the business loyally over many years, and risks causing the schemes to enter the Pension Protection Fund with a resulting reduction in benefits.”
