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Friday, May 20, 2022

Morrisons and Asda owner make fresh bids to take control of the collapsed convenience store chain McColls

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The future of convenience store giant McColl’s took another twist over the weekend after two last-minute bids to take control of the collapsed corner shop chain. 

Morrisons and Asda-owner EG Group, run by the billionaire Issa brothers, are battling to takeover the chain after it went in to administration last week.

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The chain has two stores in the borough – with one on Carlton Hill and the other in Calverton.

McColl’s lenders had rejected an offer from Morrisons on Friday that would have seen it take on the firm’s debts and repay them over time.

The bid from Morrisons – the sole supplier to McColl’s – would have protected the ‘vast majority’ of staff and stores as well as its £141m pension plan. 

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But Morrisons returned over the weekend with an improved deal that would see the lenders repaid in full immediately, satisfying one of their key demands, Sky News reported.

Petrol station giant EG Group is thought to have also then followed that up with its own last-ditch bid – including a commitment to honour McColl’s pensions, according to sources.

It is thought that PwC, which is advising McColl’s lenders, is preparing to set up a showdown between the rival bidders in which they will present their best offers for the group. 

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McColl’s, which has 16,000 staff and more than 1,100 shops, went into administration after it was unable to repay debts of nearly £100m. 

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