Popular retailer could shut shops across Nottinghamshire as chain on brink of collapse
Jobs could be at risk after McColl's said it was increasingly likely that it would be placed into administration.
The convenience store chain has at least 15 shops in the Nottinghamshire area – including one on Plumbtree Way in Eastwood.
The retailer has been in discussions with potential lenders to shore up the business, which struggled badly during the pandemic due to supply chain issues, inflation and a heavy debt burden.
McColl's, which has an extensive partnership with major supermarket Morrisons, said that unless talks to discuss potential financing solutions to resolve short-term funding issues and create a stable platform for the business were successful, it is “increasingly likely that the group would be placed into administration”.
A spokesperson said: “McColl’s confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the group would be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees.
“Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the group’s ordinary shares.”
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.
If administration is confirmed this week, it will be the largest insolvency in the UK retail sector by size of workforce since the collapse of Edinburgh Woollen Mill Group in 2020.
The spokesman said a further update would be made “as and when appropriate”.