Around 16,000 McColl’s employee’s future is hanging in balance as the uncertainty is looming regarding their job security. McColl’s confirmed on Friday that they called in PWC as administrators. They have called for administrators to protect creditors, preserve the future of the business and to protect the interests of employees.
EG Group is willing to take over
McColl’s decided to appoint administrators after its lenders turned down a last-minute rescue deal from Morrisons. However, there is a last-ditch rescue chance which may salvage the bulk of stores and jobs of the workers. SkyNews has reported that one of Britain’s biggest fuel retailing empires EG Group, is close to buying McColl’s Retail Group. However, it is still unclear about the number of secured jobs under this agreement.
Pension funds of employees
McColl’s is currently employing roughly 16,000 workers. Moreover, roughly 6,000 employees working as full-time workers. Currently, the retail giant is running more than 1,100 convenience stores and newsagents across Britain. Around 200 of these converted to Morrisons Daily stores after a partnership with the supermarket. According to The Guardian, EG Group has offered to save all jobs and 1,100 outlets across the United Kingdom. However, the deal will not include the pension scheme of the employees. McColl’s pension fund trustees called on any buyer of the business to take on the group’s scheme. EG is set to assume McColl’s non-pension debts, which amounts to about approximately £100m. Moreover, they will raise pay for workers from the legal minimum to just over £10.
The convenience store chain said it had applied to the courts to appoint administrators from PricewaterhouseCoopers. In addition, McColl’s that they were not satisfied regarding discussions with Morrisons. They feel that these negotiations would reach an outcome acceptable to them. Moreover, the company said that their administrators will secure a sale of the business “as soon as possible”.
McColl’s has been in talks for the past six months with its lenders after being hit by supply difficulties and poor sales.
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