Morrisons in last-minute attempt to rescue McColl’s and 16,000 jobs

theguardian.com:

Morrisons has put forward a last-minute rescue deal for the McColl’s convenience store chain that could protect 16,000 jobs.

The supermarket chain is understood to have offered to take on the ailing business as a going concern, assuming its debts, which amount to about £100m, and taking responsibility for its pension scheme.

The deal was put forward late last night after McColl’s, which has more than 1,100 small shops around the UK, including about 250 Morrisons Daily outlets and a number of Martin’s, warned it was “increasingly likely” to call in administrators.

McColl’s has been in talks with its lenders, the Morrisons supermarket group and other parties, thought to include the Issa Brothers who own Asda and the EG petrol station group, since November, after being hit by supply difficulties and poor sales.

McColl’s traces its roots back to 1901 when a Scottish footballer, Robert Smyth McColl, opened the first RS McColl in Glasgow. The modern business began in 1973 as a vending machine operator and went on to buy several convenience store chains before focusing solely on retail in 2000.