Caithness jobs saved at stores in Castletown, Halkirk and Thurso as Morrisons buy McColl's
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THE jobs at four McColl's convenience and newsagent stores in Caithness have been saved following a takeover by supermarket retailer, Morrisons.
The purchase of the business, which went into administration last week, means 16,000 jobs at over 1100 stores throughout the UK are now safe, including those at the shops in Main Street, Castletown, Sinclair Street, Halkirk, Provost Sinclair Road, Thurso, and Mount Pleasant, Thurso.
The news was described as "a huge relief for staff" by the retail trade union, USDAW, which has around 360,000 members.
It welcomed the takeover by Morrisons but wants assurances for the staff along with trade union recognition "to give them a voice in the business."
Joanne McGuinness, USDAW national officer, said: "It is great news that Morrisons has been successful in their bid to buy McColl’s out of administration and it will be a huge relief for the staff. We are now seeking urgent discussions with Morrisons to help secure the future for the staff.
"McColl’s was a non-unionised business, which meant their staff had no real voice in the future of the business. USDAW has a long-standing and productive relationship with Morrisons and we will be looking to extend trade union representation to all staff in McColl’s."
Morrisons beat off a rival bid from the EG Group, which runs the ASDA supermarket chain and is owned by the billionaire Issa brothers.
It is understood Morrisons will pay off McColl's £170 million debt and take on its pension scheme. Morrisons first offer for the business was rejected and it looked like the Issa brothers would be successful but Morrisons improved its bid and clinched the deal. The company has a link with McColl's as it supplies its stores with stock.
It is thought McColl's encountered difficulties when it tried to update its range of food and came up against Covid-related supply chain problems.
If a buyer had not been found there were fears that there would be widespread store closures and job losses.
McColl's confirmed last week the business was being put into administration. It said it had "no choice" other than to place the company in administration and suspend trading after lenders declined to further extend the deadline for the business to find more money.
PriceWaterhouseCoopers LLP was appointed as administrators and to implement a sale of the business
The listing of McColl's ordinary shares was suspended with immediate effect.
