// Morrisons proposes last ditch deal for convenience chain retailer McColl’s
// Without a rescue deal, McColl’s could collapse within days
Morrisons has pitched a last-ditch deal that would avoid McColl’s collapsing into insolvency, preserving the majority of its stores and workforce, Sky News has revealed.
The deal would represent a substantial financial commitment for Morrisons and its new American private equity owners, Clayton Dubilier & Rice, because of McColl’s some £170m of debts.
Sky News stated that Morrisons tabled a proposal on Thursday evening that would see the convenience store chain’s lenders being taken on in full and its pension scheme protected.
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- McColl’s administration ‘increasingly likely’ despite last-ditch rescue talksc
- McColl’s shares set to be suspended from London Stock Exchange
The proposal was lodged with PwC, the adviser to McColl’s lenders, with a response expected imminently.
It came within hours of McColl’s admitted that administration was “increasingly likely” unless a “financing solution” to avert its collapse could be found.
McColl’s is a significant partner of Morrisons, operating hundreds of smaller shops under the Morrisons Daily brand.
Without a rescue deal, McColl’s, which is one of Britain’s biggest convenience store chains, could collapse within days, putting thousands of high street jobs at risk.
More to follow
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