Morrisons has rescued convenience retailer McColl’s from administration, saving 16,000 jobs.
The supermarket chain will take on McColl’s 1,160 shops and its two pension schemes, which together have more than 2,000 members. It will also pay off McColl’s £170m debts.
McColl’s went into administration on Monday (9 May), citing Covid-19 related disruption and supply chain challenges which affected product availability and customer spending. It was immediately sold to Alliance Property Holdings, part of the Morrisons Group, which is McColl’s largest supplier.
During the current economic climate, the completion of this transaction provides much needed certainty to McColl’s 16,000 staff after a period of understandable concern following the group’s challenges over the past months.
As well as saving thousands of jobs, this deal secures a platform for the trustees of the Group’s pension schemes to enter into arrangements which will protect the pensions entitlements of so many people.
Morrisons wholesale supply agreement will continue in place after the transaction minimising disruption to customers and employees.
Morrisons and fuel station empire EG Group battled it out for McColl’s. According to reports, Morrison’s first offer was rejected, but it later matched EG Group’s offer to pay off McColl’s debts in full and take on all stores and staff.