McColl’s warned that the group was “increasingly likely” to collapse in the administration, which could put 16,000 jobs at risk.
The group’s statement, which came in response to recent press speculation, said a third-party buyer would be sought if placed in the administration, adding that “little or no value” would be attributed to its shares in the move. . However, he noted that discussions on potential funding plans are still ongoing.
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.
While sources told Sky that there was now probably “some form” of insolvency proceedings, another source said a bailout deal was still possible and ongoing talks on the group’s future could lead to a postponement of the appointment of administrators. week.
In its full statement, McColl’s said: “As previously revealed on April 25, 2022, the group continues to discuss potential financial solutions for business to solve short-term financing problems and create a stable platform for business in the future.
Although no decision has yet been made, McColl’s confirms that unless an alternative solution is agreed in the short term, the group is more likely to be brought under management in order to sell the group to a third party buyer and securing the interests of creditors and employees. ”
He added: “Even if a successful outcome is achieved, it is likely to result in little or no value attributable to the group’s ordinary shares.