McColl’s collapsed in the administration in a move that puts 16,000 jobs at risk after creditors failed to extend their banking agreements.
In a recent statement, the retailer said it “unfortunately has not been left without a choice” other than appointing PwC as administrators, with the expectation that they intend to sell the business to a third-party buyer “as much as possible”.
The group’s directors and subsidiaries have filed lawsuits today to appoint Mark James Tobias Banfield, Robert Nicholas Lewis and Rachel Maria Wilkinson of PwC as administrators, and the application is expected to be approved by the court later in the day.
This is because the group’s top creditors have refused to further extend their waivers, which have now expired.
In a statement, McColl’s said: “While constructive discussions with the Company’s main wholesaler to find a solution to the Company’s funding problems and a stable platform for progress have made significant progress, creditors have made it clear that they have not satisfied that such discussions would lead to an acceptable result. “
He now demanded that the listing of his ordinary shares be stopped immediately.
McCall had wanted a potential collapse before in response to recent speculation in the press, confirming that a third-party buyer would be sought if placed in the administration, adding that “little or no value” would be attributed to his shares in the move.
Sky News was the first to announce the potential administration last night (May 5), noting that McColl’s may call administrators today.
It said the news could “spark renewed interest” in a partial takeover by both Morrison and EG Group, which is owned by TDR Capital and the Issa brothers.
According to the BBCMorrison really did offered a bailout deal on Thursday in an attempt to save the chain, but this was rejected by creditors.
According to the BBC, Morrison’s said: “We have put forward a proposal that would avoid today’s announcement that McColl’s has been introduced into the administration, keep most jobs and shops safe, and fully protect retirees and creditors.
“For thousands of hard-working people and retirees, this is a very disappointing, damaging and unnecessary result.