Retail chain McColl’s has issued a new statement this afternoon (May 6) confirming the appointment of administrators.
The stores, which have a partnership agreement with supermarket Morrisons, employs some 16,000 across 1,100 stores – including in Thanet.
McColl’s had said that it needed short-term funding or would likely “be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees”.
A statement issued at 1pm today has now confirmed the administration.
The statement says: “The company’s senior lenders have this morning declined to further extend the waiver of the company’s banking covenants, which has now expired. Whilst the constructive discussions with the company’s key wholesale supplier to find a solution with them to the company’s funding issues and create a stable platform going forward had made significant progress, the lenders made clear that they were not satisfied that such discussions would reach an outcome acceptable to them.
“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 LLP as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible.”
Documents were filed in court today to appoint Mark James Tobias Banfield, Robert Nicholas Lewis and Rachael Maria Wilkinson of PwC as Administrators.
The Group has requested that the listing of its ordinary shares be suspended with immediate effect.
In a trading update in February the chain reported a drop in footfall due to the surge in COVID-19 cases relating to Omicron, particularly over the Christmas period, impacting trading.
It is hoped that a sale out of administration would preserve the majority of the workforce and stores.
In Thanet McColl’s have shops in Ramsgate and Birchington.