// Following speculation, McColl’s has confirmed it is seeking a capital injection in a bid to save the business
// If the retail group were to collapse it would leave 16,000 employees without jobs
Convenience store chain McColl’s has confirmed it is seeking a capital injection in a bid to prevent its collapse.
McColl’s, which owns a string of 1,100 managed convenience stores and newsagents, said it continues to receive credit support from its key commercial partners as it tries to secure a long-term agreement with lending banks.
The retail group also confirmed that it had received a takeover approach for the whole business which was later withdrawn.
READ MORE:
- 16,000 jobs at risk as McColl’s battles insolvency fears
- McColl’s beats target to launch 100th Morrisons Daily store
Despite raising £30 million in September 2021, annual revenue for the business dropped by 11%to £1.1 billion in the latest financial year.
Net debt increased from £89.6 million at the end of 2020 to £97 million for the year that ended 28 November 2021.
“Since the start of the new financial year, there has been a tangible improvement of product availability in stores,” McColl’s said.
“However, the business saw a material step-down in footfall due to the surge in Covid-19 cases relating to Omicron, particularly over the Christmas period, impacting trading. While demand has since picked up, revenues in the first quarter are behind expectations.”
The struggling convenience store owner plans to complete 450 Morrisons Daily store conversions by the end of 2022 in order to reshape the business into a more profitable and sustainable model.
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