UK: Morrisons acquires McColl’s business

Morrisons will acquire all of McColl’s 1,160 stores which include 270 Morrisons Daily format stores.

Morrisons paid out a total of £190 million to rescue the collapsed convenience chain McColl’s, administrator’s documents have revealed. The acquisition includes all of McColl’s 1,160 stores, 270 of them Morrisons Daily format stores.

The administration was initiated by McColl's board on Friday after McColl's lenders withdrew their support for the business, and became effective today

“Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders. This transaction offers stability and continuity for the McColl’s business and, in particular, a better outcome for its colleagues and pensioners,” said David Potts, Morrisons Chief Executive.

“We all look forward to welcoming many new colleagues into the Morrisons business and to building on the proven strength of the Morrisons Daily format.”

The secured lenders and preferential creditors will be paid in full with a distribution also expected to unsecured creditors.

Morrisons Wholesale Supply Agreement to McColl’s stores will continue without interruption.