McColl’s rescued by Morrisons’ via pre-pack Administration
Morrisons has completed the acquisition of the convenience retailer McColl’s Retail Group. The prognosis for McColl’s had looked bleak as previous bids over several months had failed to identify a bid acceptable to its secured lenders. The acquisition by Morrisons was completed very shortly after McColl’s entered Administration and sees the positive use of the oft-maligned “pre-pack” Administration process, reportedly resulting in the circa 16,000 McColl’s staff retaining their jobs, no immediate announcement of store closures and a rescue for MColl’s pension schemes.
Sarah Mower is a chartered legal executive and specialist in Insolvency & Business Recovery at Barker Gotelee Solicitors.