Could Ryde's McColl's Store Be Under Threat?

Friday, 6 May 2022 06:36

The future of the Isle of Wight's McColl's store in Ryde looks uncertain after reports emerged that the company could fall into administration.

McColl’s Retail Group is one of Britain’s biggest convenience store chains.

Sky News has learnt that McColl's is on the brink of collapse, putting thousands of high street jobs at risk nationally.

Retail industry sources said that the situation remained fluid, but a collapse into some form of insolvency proceedings was now more likely than not.

One cautioned, however, that a rescue deal did remain possible and said that ongoing talks about McColl's future could mean that the appointment of administrators was delayed beyond the end of this week.

McColl's is located in Union Street.

McColl's trades from approximately 1,100 convenience stores and newsagents across Britain, with about 200 of them now trading under the Morrisons Daily format through a partnership with the supermarket giant.

If McColl's is forced into administration, it would be the largest insolvency in the UK retail sector by size of workforce since the collapse of Edinburgh Woollen Mill Group in 2020.

McColl's said in a statement:

"As previously disclosed on 25 April 2022, the Group remains in discussions regarding potential financing solutions for the business to resolve short term funding issues and create a stable platform for the business going forward.

"However, whilst no decision has yet been made, McColl's confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the Group would be placed into administration with the objective of achieving a sale of the Group to a third-party purchaser and securing the interests of creditors and employees. Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the Group's ordinary shares."

Morrisons declined to comment, while EG Group has been contacted for comment.