Reuters – Struggling British convenience shop chain McColls said on Thursday it was increasingly likely that the group would be placed into administration, a move that could put thousands of jobs at peril.
The company statement was released after a Sky News reporter tweeted that McColls, which has an extensive partnership with supermarket major Morrisons, could crash into administration as soon as Friday.
McColls reiterated that it remained in talks on potential financing solutions to resolve shortterm funding issues and create a stable platform for the business.
“McColls 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 thirdparty purchaser and securing the interests of creditors and employees,” the company said.
The group has a wholesale tieup with Morrisons, Britains fourth biggest supermarket chain.
The 1,100store group, which runs McColl‘s and Morrisons Daily branded convenience stores as well as Martin’s newsagents, employs about 16,000.
Earlier this week, McColls said it was likely to request the listing of its shares be suspended on June 1 as it would not meet a deadline to publish its annual results by the end of May.