Skip to main content

16,000 jobs at risk as McColl’s battles insolvency fears

// The move comes as McColl’s raised £30 million from shareholders in a cash call just six months ago
// The group carries around £170 million of debts

Convenience retailer McColl’s is reportedly scrambling to secure new funding to prevent a collapse that could put around 16,000 jobs at risk.

According to Sky News, the symbol group retailer had limited time to secure new funding, with millions of pounds of its bank debt being sold to hedge funds and few “obvious options to guarantee its future”.

The move comes as McColl’s raised £30 million from shareholders in a cash call just six months ago, followed by the expansion of Morrisons Daily stores from 350 to 450 within a year in November.

READ MORE: Sainsbury’s poaches new fresh food boss from McColl’s

If the retail group which carries around £170 million of debts, were to collapse, it will result in 16,000 employees, with 6,000 of them on a full-time equivalent basis.

Asda owners, EG Group‘s Mohsin and Zuber Issa and the private equity firm TDR Capital, have reportedly held discussions about making an offer for group, which operates 1,100 newsagents and convenience stores, but decided against doing so earlier this week, Sky News said.

However, Morrisons, which agreed to a £7 billion sale to the private equity firm Clayton Dubilier & Rice last year, is said to be monitoring McColl’s situation closely with a “view to possibly acquiring hundreds of its stores out of insolvency.”

The news comes as Morrisons owner CD&R  opted not to make an offer for beauty retailer Boots, according to Reuters.

The move comes as the CMA is still probing the supermarket’s takeover and has ruled out the private equity firm integrating other businesses with Morrisons.

Retail Gazette has contacted Morrisons for comment.

Click here to sign up to Retail Gazette‘s free daily email newsletter

The post 16,000 jobs at risk as McColl’s battles insolvency fears appeared first on Retail Gazette.



from Retail Gazette https://ift.tt/pFYjGfD
via IFTTT
Labels:

Comments

Post a Comment

Popular posts from this blog

Eagle Labs launches impirica CBD brand

ST. PETERSBURG, Fla. — Eagle Labs has launched impirica, a new brand of CBD intended to eliminate consumer fear, and increase confidence, in trying the exciting new cannabidiol category. Michael Law Although most Americans have now heard about CBD, many are very confused and concerned about product quality. This is inhibiting trial in the category and holding back conversion into sales. In fact, a 2017 study by Johns Hopkins University found that two out of three CBD products on the shelf did not contain the amount of CBD reflected on the label. Furthermore, in 2018 and 2019, the FDA sent notices to a substantial number of CBD manufacturers advising them of serious concerns about product quality or egregious medical claims. The impirica brand looks different than most CBD brands — the brand name itself connotes testing and trust, says Eagle Labs chief commercial officer Michael Law. “It doesn’t use the traditional category colors of browns and greens, and you won’t find a hemp...
70 comments
Read more

Sagar Daryani, CEO and Co-founder – Wow! Momo & Saga: From a Kiosk to a Kingdom

Sagar Daryani’s entrepreneurial odyssey from humble beginnings to pioneering success has redefined the landscape of food startups in India. Co-founding Wow! Momo, he has spearheaded the growth of the largest indigenous QSR chain in the country, crafting a remarkable saga of triumph The Genesis: A Visionary Venture Takes Root In 2008, armed with a mere Rs. 30,000 and boundless ambition, Sagar Daryani and Binod Homagai embarked on their entrepreneurial journey while still pursuing their graduation in B.Com Hons from St. Xavier’s College, Kolkata, even before their college results were out. They knew the value for money and boot-strapped to plough back profits and grow their venture. Sagar spearheaded brand expansion, brand creation, and marketing and retail operations. Grew across the city with a strong consumer focus. The early days were hard but keeping track of the money flow was even harder. Believing in the concept of ‘1 rupee saved is 5 rupees earned’, and the lessons they lear...
1 comment
Read more

Homegrown ice cream chain HOCCO to open 250 stores, eyes Rs 400 crore by FY26

Ankit Chona, Founder and Managing Director of HOCCO, delves into the company’s revenue model, growth strategies, and vision for the future… Bengaluru: HOCCO (House of Chonas Collaborative) , the Ahmedabad-based ice cream and quick-service restaurant (QSR) chain, boasts a rich legacy spanning over 70 years, with roots tracing back to pre-independence India. The Chona family has been deeply entrenched in the food industry since 1944, originally operating in undivided Pakistan. Following the Partition, Satish Chona , an engineer with British Overseas Airways Corporation, relocated from Karachi to India. After journeying through multiple cities, he ultimately settled in Ahmedabad, where he established his first QSR outlet in 1953. Three decades later, he expanded into the casual dining segment, launching a restaurant in Baroda while continuing the family’s ice cream manufacturing business. However, in 2017, the company sold its ice cream division to a South Korean firm, shifting its fo...
Post a Comment
Read more