Morrison's buys McColl's saving 16,000 jobs and preventing company's collapse
Provided by Metro The supermarket giant has fended off all other competition ahead of the deal (Picture: Reuters)
Thousands of jobs at McColl’s will be saved after Morrisons today reportedly won a battle to take over the chain.
The retailer fell into administration on Friday, plunging the future of its 1,100 shops and 16,000 staff into doubt.
McColl’s previously warned administration was ‘increasingly likely’.
Morrisons has now fended off competition to take over the chain.
Forecourt giant EG – whose owners also run supermarket giant Asda – had also been among potential favourites to complete a rescue deal for McColl’s.
Sky News reported today’s deal will be structured ‘as a pre-pack administration’, meaning Morrisons can buy McColl’s once it officially enters insolvency proceedings.
Shares in McColl’s had already plunged, after it was reported last month that talks with its lenders and banks would likely leave shareholders empty-handed under rescue efforts.
The group runs more than 1,100 convenience shops across England, Scotland and Wales.
It serves millions of customers each week across its stores, and was founded in Glasgow in 1901.
Morrisons was contacted by Metro.co.uk for comment.
Reference: Metro: Kirsten Robertson