Morrisons looks set to win battle for UK convenience group McColl’s
News comes as a blow for petrol station operator EG which also made an offer for McColl's
10 May 2022 | 0
Following a last-minute offer for crisis-hit UK convenience store chain McColl’s, Morrisons looks set to triumph after its offer beat that of petrol station operator EG Group.
The Financial Times reports Morrisons’ final proposal to immediately repay McColl’s lenders and buy McColl’s out of administration won through in a fierce contest on Sunday night, according to those briefed on the process.
McColl’s already has close commercial ties with Morrisons. McColl’s operates around 1,200 convenience stores, which includes more than 200 outlets operating under the Morrisons Daily brand.
The sale could protect some of the 16,000 jobs that would be at risk if the company collapsed. The convenience store group has debts of approximately £145 million (€169 million).
Although the group received a trading boost in the early stages of the pandemic, many UK-based c-stores have reportedly since reverted to their traditional function of small top-up shops.