// McColl’s acknowledges “softer trading” as customers cut back on the spending amid a cost-of-living crunch, while the business continues rescue talks
// The convenience retailer said it had seen “mixed trading” since a previous update on February 28
McColl’s has experienced mixed trading since it last updated on February 28, and flagged that while a recovery in trading performance had continued during the first half of March, the business has “since experienced softer trading through the Easter period”.
The convenience chain retailer said it was impacted by reduced consumer spending and continued supply chain disruption across the industry, but added that it is “working closely with its wholesale supplier to mitigate product availability issues”.
The group, which has been hunting for a bidder in a bid to prevent its collapse, has debts of almost £170m and expects to delay the publication of its full-year results until a resolution of financing talks.
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A rescue deal was “under active discussion” with “its key commercial partner and lenders”, as the company attempts to “resolve the short term funding issues and create a stable platform for the business going forward”.
“It should be noted that even if such a successful outcome is achieved it is increasingly likely to result in little or no value being attributed to the group’s ordinary shares,” the retailer added.
Despite its woes, the group said that its Morrisons Daily stores continue to “perform strongly” delivering like-for-like sales growth that is at least 20% better than non-converted, comparable stores.
Some 69 stores have opened as Morrisons Daily stores this year, and McColl’s said that “the move to convert stores to the Morrisons Daily format is fundamentally reshaping the business into a more profitable and sustainable model in the medium term.”
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