HEREFORDSHIRE jobs are at risk after convenience store chain McColl’s announced bankruptcy.
It was reported earlier today that Morrisons had filed a last-minute bailout deal to save the struggling convenience store business.
The chain, which has stores in Hereford and Bromyard, had previously confirmed on Thursday that it looked “increasingly likely” that it could fall into administration, putting the future of 1,100 stores and 16,000 at risk. employees.
The PA news agency said it understood earlier today that Morrisons had approached PriceWaterhouseCoopers, who were advising McColl’s lenders.
A hoped-for bailout deal would have taken the company into operation, absorbing its debts of more than £100million and taking responsibility for the company’s pension scheme.
The two companies are major partners, with McColl’s operating hundreds of convenience stores under the Morrisons Daily brand, including Bromyard’s ‘Top Shop‘.
However, McColl’s has struggled financially in recent years after witnessing soaring costs due to supply chain disruption, inflation and its heavy debt load.
But, in an announcement this afternoon, McColl’s said talks with its lenders collapsed on Friday as creditors refused to extend the deadline for the retailer to find more money.
The company said in a statement to the London Stock Exchange: “In order to protect creditors, safeguard the future of the business and protect the interests of employees, the board unfortunately had no further choice but to place the company under judicial administration. , appointing PriceWaterhouseCoopers as administrators, in the hope that they intend to implement a sale of the business to a third party acquirer as soon as possible. »
McColl’s will ask the court later today to name the administrators.
Stock market shares have been suspended.