Convenience store chain McColl’s has collapsed into administration – putting 16,000 jobs at risk.
McColl’s, which was founded in Glasgow by Scottish footballer Robert Smyth McColl, said discussions with its lenders collapsed on Friday as creditors refused to extend a deadline for the retailer to find more cash.
The firm said administrator PriceWaterhouseCoopers would hold talks with potential buyers.
The development comes after supermarket giant Morrisons proposed a last-minute rescue deal to save the struggling newsagent chain.
McColl’s will apply to the court later today to appoint the administrators, while shares on the stock market have been suspended.
McColl’s said in a statement to the London Stock Exchange: “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.”
McColl’s Scottish roots
McColl’s roots trace back to Glasgow in 1901, when Scottish football player Robert Smyth McColl founded the first shop in Glasgow along with his brother Tom.
The business began in 1973 as a vending machine operator before it went on to purchase several convenience store chains.
After purchasing Martin’s chain of newsagents in 1998 it became the largest neighbourhood retailer in the UK.
In 2000, it switched its operations to focus solely on retail, rather than vending machines.
In its 121-year history, the prominent retailer grew to over 1000 convenience stores across the UK.