McColl's administration puts local jobs at risk

Staff at convenience chain McColl's face an anxious weekend as they await a decision on its takeover by the Issa brothers' EG Group.

McColl's Retail Group plc issued an update on its financing discussions on Friday stating that there had been "no choice" other than to place the company in administration and suspend trading.

The group has a number of stores in the north-east and Moray which trade under the R S McColls and Morrison's Daily branding including newly rebranded branches in Ellon and Banff as well as stores in Kemnay, Fraserburgh, New Pitsligo, Insch, Rothes and Elgin

Following an announcement last Tuesday, the company's senior lenders declined to further extend the deadline for the business to find more money.

While the discussions had made significant progress, the company confirmed "the lenders made clear that they were not satisfied that such discussions would reach an outcome acceptable to them."

A spokesperson stated: "In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration, appointing PriceWaterhouseCoopers LLP as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible."

The group requested that the listing of its ordinary shares be suspended with immediate effect.

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