McColl's purchase is 'a good outcome' for the business say new owners, Morrisons
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THE purchase of the McColl's convenience stores – including four in Caithness – is "a good outcome" for the business and offers it "stability and continuity", according to the new owners.
The supermarket retailer, Morrisons, confirmed it has taken over more than 1100 stores and 16,000 staff throughout the UK, including those at the shops in Main Street, Castletown, Sinclair Street, Halkirk, Provost Sinclair Road, Thurso, and Mount Pleasant, also Thurso.
David Potts, Morrisons chief executive, said: "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."
The company said under the deal with the adminstrator, PriceWaterhouseCoopers LLP, it has acquired all of McColl’s 1,160 stores which include 270 Morrisons Daily format stores. All McColls staff will be transferred with the business to Morrisons while McColls two pension schemes will be taken on by the Morrisons Group.
The company also stressed that its Wholesale Supply Agreement to McColl’s stores will continue without interruption and the stores will continue to trade.
Mr Potts added: "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 administration was initiated by McColl's board last Friday after lenders withdrew their support for the business.
As reported in the Caithness Courier on Wednesday, the news of the purchase of McColl's stores 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."
The union said McColl's was a non-unionised business but pointed out that USDAW has "a long-standing and productive relationship with Morrisons" and is keen "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.
Morrisons, it is expected, will pay off McColl's £170 million debt. Morrisons first offer for the business was rejected but it improved its bid and clinched the deal.
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.
The listing of McColl's ordinary shares was suspended with immediate effect.
