McColl's confirms it has collapsed into administration putting 1,100 shops and 16,000 staff at risk
Retailer McColl's has confirmed that the firm has collapsed into administration.
The convenience stores and newsagents, which has shops in and around Wakefield, said discussions with its lenders collapsed today as creditors refused to extend a deadline for the retailer to find more cash.
In a statement, the company said: “In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration, appointing PriceWaterhouseCoopers as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible.”
Sky News first reported on yesterday, May 5, that the corporation could call in administrators as early as the next day.
McColl’s had been in talks with potential lenders to help strengthen the company, which struggled during the pandemic due to supply chain challenges, inflation and a large debt load.
But it said talks with lenders broke down today, Friday, after creditors refused to extend a deadline for the company to find additional funds.