McColl's - which has a store in Aylesbury - goes into administration
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Sky News reports that a group that co-owns Asda are the favourites to secure a deal saving the brand.
At this stage it is unclear whether that takeover will involve saving all 1,400 stores and the jobs of the people employed at them.
The EG Group, the petrol station operator, has emerged as the favourites to agree a deal with the administrators appointed at McColl’s today (6 May).
EG Group is fronted by the Issa brothers who are best known for buying a majority stake in ASDA in October 2020.
Initially, it was hoped that Morrisons, the supermarket giants, that are in partnership with McColl’s might make a bid to rescue the retailer.
McColl’s operates over 200 Morrisons Daily branded stores.
In response to the national reports yesterday, suggesting the major supermarket chain had tabled an offer to McColl's pension commitments and its £170 million debt.
A Morrisons spokesman said: "We put forward a proposal that would have avoided today's announcement that McColl's is being put into administration, kept the vast majority of jobs and stores safe, as well as fully protecting pensioners and lenders.
"For thousands of hardworking people and pensioners, this is a very disappointing, damaging and unnecessary outcome."
Earlier today a McColl’s spokesman said: "In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably left with no choice other than to place the company in administration, appointing Price Waterhouse Cooper as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible."
In recent years the retailer has been struggling with increasing costs due to supply chain disruption and inflation.
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