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Morrisons rescues McColl's taking on all 16,000 staff - Perthshire Chamber of Commerce

Morrisons rescues McColl's taking on all 16,000 staff

Supermarket group Morrisons has won a battle to rescue McColl's, the convenience store and newsagent chain, and taken on all 16,000 staff members.

Morrisons beat a rival offer from EG Group, the petrol station empire, owned by the billionaire Issa brothers.

Morrisons will pay off McColl's £170m debts and take on its 1,160 shops and pension schemes, with 2,000 members.

The supermarket's boss said the deal offered stability and continuity for the business, its staff and pensioners.

McColl's was put into administration by PwC on Monday and was immediately sold to Morrisons.

Rob Lewis, joint administrator and partner at PwC, said the deal provided "much needed certainty to McColl's 16,000 staff after a period of understandable concern".
The threat of McColl's going into administration had raised fears that if a buyer was not found there could be UK-wide store closures and job losses.

Morrisons' first offer was knocked back and the Issa brothers looked close to clinching the deal.

The companies battled it out over the weekend. Morrisons matched EG Group's offer to pay off McColl's debts in full and straight away and take on all its stores and staff.

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