McColl's Morrisons

Battle for struggling UK convenience chain prompts Asda owner to pledge pension funding.

Morrisons has put forward a last-minute offer to bail out McColls in a bid to claw it out the hands of its Asda owning rivals.

Bradford headquartered supermarket chain Morrisons has improved its offer to buy McColls by vowing to pay its lenders immediately in full, Sky News first reported today. Morrisons ups offer to bail out McColls in bid to claw chain back from Asda owning rivals Morrisons has put forward a last-minute offer to bail out McColls in a bid to claw it out the hands of its Asda owning rivals.

Morrisons and Asda-owner EG Group, run by the billionaire Issa brothers, are battling for the firm in a takeover tussle that could send shockwaves through the ...

The decision to place the group into administration, a key condition of the offer from EG Group, was condemned by Morrisons as 'disappointing, damaging and unnecessary'. EG Group also declined to comment. Morrisons declined to comment.

Supermarket chain Morrisons has tabled a new offer to buy the troubled convenience store chain, McColl's Retail Group.

Their EG Group is also aiming to offer McColl’s workers a pay rise to £10.05 an hour for over 18-year-olds. It already has a partnership with McColl’s and has offered to take on its debts. It is also understood to be willing to match EG Group’s offer to pay McColl’s lenders – including NatWest Group – in full, as well as its pension commitments.

The revised offers have been made for the failing convenience chain, the BBC understands.

It has also formed a tie-up with the chain to convert hundreds of McColl's shops to Morrisons Daily convenience stores. But trustees fear the insolvency process would see pensions liabilities shed in the process. Morrisons is McColl's key wholesale supplier. But lenders turned the rescue deal down. Rival bidders Morrisons and the EG Group are in a last gasp race to buy the convenience chain McColl's. Morrisons had already agreed to take on McColl's debts, but it is now understood to be willing to pay McColl's lenders in full, straightaway, matching a similar pledge thought to have been made by EG Group.

Morrisons has tabled a new bid for the stricken McColl's as it looks to keep its partner away from competitor Asda's owners.

On Friday EG Group, the petrol forecourts to fast food company led by the billionaire Issa brothers Zuber and Mohsin, who also acquired Asda last year had reportedly tabled an offer that would see lenders receive 90 pence to the pound although other sources suggested they would be repaid in full. The BBC has also reported that it understands “that EG Group has now met [Morrisons new] bid with a revised proposal”. McColl’s fall came despite the fact that last year it raised £30m from shareholders to invest in expanding its Morrisons Daily convenience stores.

Supermarket giant Morrisons and the Issa brothers, the billionaires who own Asda, have submitted final offers to rescue collapsed retailer McColl's.

It is understood that EG group has proposed to retain the retailer's stores and staff, promising to increase the lowest rate of McColl's staff to £10.05. However, it is predicted that any sale to EG could result in short term disruption to supply for McColl's stores. McColl's fell into administration on Friday, plunging the future of its 1,100 shops and 16,000 staff into doubt.

Convenience store chain expected to be put into administration as soon as Monday morning.

That sparked a bid battle for the London-listed company, which employs 16,000 people across 1,100 shops in the UK. Morrisons was bought out by the US private equity group Clayton, Dubilier & Rice last year. McColl’s is to be sold via a pre-pack administration, after the Scotland-based retailer’s lenders declined a request to restructure its debt.

Morrisons has won a two-way battle with petrol retailer EG Group for control of a chain employing 16000 people and operating from 1100 stores across Britain ...

McColl's lenders rejected a solvent rescue offer from Morrisons on Friday that would have involved them rolling over more than £100m of debt into the supermarket chain, but being repaid in full as the loans expired. Morrisons' commitments to the future of McColl's include retaining all 1,100 stores and 16,000 workers, as well as honouring all of its outstanding pension obligations, the insider added. On Friday, Morrisons said it believed there was no reason for the corner shop empire to be declared insolvent, but the pace of events over the weekend, with McColl's teetering on the brink of collapse, left PwC with no time to finalise a solvent transaction, according to an insider close to the firm.

The supermarket and EG Group have both tabled final offers to secure a rescue deal for the convenience store chain, which fell into administration on Friday ...

It has also formed a tie-up with the chain to convert hundreds of McColl's shops to Morrisons Daily convenience stores. Morrisons is McColl's key wholesale supplier. However, it is understood that both EG and Morrisons tabled late improved offers prior to the administrators' Sunday 6pm deadline for offers and that Morrisons is likely to be chosen.

Supermarket chain Morrisons has signed a deal to buy 1100 McColl's convenience stores out of administration after the firm's shock collapse last week, ...

Morrisons is understood to be buying McColl's as a pre-pack administration and will acquire the chain as soon as it enters insolvency proceedings today. But the firm announced it had to go into administration last week "to preserve the future of the business and to protect the interests of employees". Morrisons will buy McColl's stores and save 16,000 jobs after the firm announced its administration last week, according to reports.

The supermarket giant has fended off competition from the billionaire Issa brothers, who also own Asda, with an offer that is expected to see McColl's ...

The bid from Morrisons – the sole supplier to McColl's – would have protected the 'vast majority' of staff and stores as well as its £141million pension plan. The supermarket giant has fended off competition from the petrol station operator with an offer that is expected to see McColl's stores and workforce preserved in their entirety Morrisons today won a battle to take over collapsed convenience store chain McColl's in a move that will secure the future of 16,000 jobs and 1,100 shops.

McColl's: latest Morrisons news, retail group shares and stock price - are shops saved from administration? · According to reports, the supermarket giant has won ...

A sale to EG was also expected to cause a short-term disruption in supply for McColl's stores, as Morrison’s wsa expected to cancel its wholesale supply partner agreement had its offer not been accepted. The McColl's Retail Group is a British convenience store and newsagent chain that operates under the names Morrisons Daily and McColl's (for its convenience stores), Martin's (for its newsagents and pound shops) and RS McColl in Scotland. It claimed the underpayments were due to historical errors and that employees had been promptly reimbursed, but was ordered to repay the money as well as a £3.2 million fine for violations such as deducting pay from wages for uniforms and expenses, or failing to pay the correct apprenticeship rate. Wickham said that stores that had done this had performed well because shopping habits shifted to buying more local produce during the coronavirus crisis, but the chain lacked investment and only a small percentage of its stores made the switch. McColl’s had been in talks with potential lenders to help strengthen the company, which struggled during the pandemic due to supply chain challenges, inflation and a large debt load. After a weekend battle between Morrisons and EG Groups, the supermarket giant has won out in its bid to take on the struggling McColl’s convenience chain.

McColl's Retail Group, one of Britain's biggest convenience store chains, has been saved from administration by Morrisons, after a battle with EG Group ...

This will have no doubt spurred Morrisons on to protect the Morrisons Daily business. “With McColls facing administration, Morrisons was once again at risk of losing their convenience store formats, which was going to be a huge concern for Morrisons’ new owners as Morrisons Daily was performing well compared to McColl’s original brand. “Morrisons isn’t new to the convenience store business, with Morrisons earlier operating M Local stores, but their stores collapsed in 2015 and were rebranded as My Local stores.

Convenience retailer McColls, which operates around 1,100 stores across the UK announced its collapse on Friday, sparking a bidding war which rapidly developed ...

More than 200 have already been converting and are said to be performing well. Convenience retailer McColls, which operates around 1,100 stores across the UK announced its collapse on Friday, sparking a bidding war which rapidly developed over the weekend. This website uses cookies so that we can provide you with the best user experience possible.

Morrisons have agreed a rescue deal after beating EG Group in the battle to buy the collapsed convenience chain.

Morrisons chief executive David Potts said: “Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders. On Friday (May 6) it was announced that the convenience chain fell into administration, plunging the future of its 1,160 shops and 16,000 staff into doubt. A spokesperson for the McColl’s Pension Schemes said: “The trustees welcome the announcement that Morrisons will continue to support the schemes following its acquisition of McColl’s business.

The supermarket chain has beaten a rival offer from EG Group which is owned by billionaire Issa brothers.

But Morrisons is in a better position to do that than McColl's was." "It was set to lose an estimated £130m if McColl's had gone into administration," he said. "This isn't just a deal, it's people's lives," he said. You can also get in touch in the following ways: "Those stores are less than a quarter of the total McColl's estate but adding five a week it will be a sizeable chain in the not too distant future and those stores are definitely profitable. As McColl's future hung in the balance questions arose around what would happen to its two defined benefit pension schemes. It's had to fight tooth and nail to win, matching EG's pledges. "Like any retail business there's a strong will to keep as many stores as possible but it's a tough time for retailers and ultimately the number of stores will likely have to come under review at some point." A spokesperson for McColl's Pension Schemes said: "The trustees will continue to engage with all stakeholders to ensure that members' benefits are protected following the completion of the transaction." It had offered on Thursday only to take on "the vast majority" of stores and staff. "This transaction offers stability and continuity for the McColl's business and, in particular, a better outcome for its colleagues and pensioners." Morrisons almost let the deal slip away but thanks to a delay in administrators being appointed it was able to come back with a final and better offer.

The Morrisons deal appears to secure the immediate future of McColl's stores, the jobs of its 16000 employees and its pension fund, but business as usual is ...

There are currently around 200 stores carrying the Morrisons branding with a target of 450 by November. These stores are the top performers in the group and the jewels in the crown – but McColl’s problems remain myriad. McColl’s is a business with experience in supply chain disruption, firstly with the collapse of former supplier P&H in November 2018, and indeed over the duration of its subsequent relationship with Morrisons. There are reasons why McColl’s has arrived in this crisis position, and while the immediate pressure from lenders has been removed, business as usual is not an option if it wants to make it work long term.

U.K. grocery giant Morrisons has won the battle for control of bankruptcy-threatened McColl's Retail Group, one of Britain's biggest convenience store ...

Morrisons chief executive David Potts said: “Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders. The deal also represents a sudden change of direction. Since then, both Debenhams, which employed about 12,000 people, and Sir Philip Green's Arcadia Group, which had a workforce of roughly 13,000, have also disappeared. The lenders, which include banks Barclays, HSBC HBA NWG The outcome follows a fierce battle over the future of a company which has seen its shares in freefall, having plummeted from a valuation of $247 million to become almost worthless. Morrisons' status as a major creditor of McColl's is also understood to have been influential in the final decision.