Morrisons rescues McColl's saving Aylesbury jobs

Supermarket giants Morrisons have taken over McColl’s rescuing the business from administration and securing the future of its 1,160 stores including one in Aylesbury

By James Lowson
Tuesday, 10th May 2022, 10:37 am

The future of the convenience outlet business was thrown into jeopardy on Friday (9 May), when McColl’s announced it had reached an agreement with administrators.

Since then, Morrisons which has a partnership with McColl’s already, has agreed to take on all 16,000 people currently employed by the shopping firm.

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McColl's - which has a store in Aylesbury - goes into administration

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McColls in Haddenham

As well as an Aylesbury store located in Jansel Square, there are McColl’s-run shops in Haddenham, Thame, Tring and Princes Risborough.

After failing to agree a deal before McColl’s entered administration, reports emerged suggesting EG Group, the Asda co-owners, was close to a takeover.

Ultimately, Morrisons reached an agreement with McColl’s after agreeing to pay off its £170 million debts and existing pension schemes.

On Monday (9 May), McColl’s was put into administration by PWC, but then immediately sold onto the supermarket giants.

Morrisons' chief executive, David Potts, said: "Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl's and all its stakeholders.

"This transaction offers stability and continuity for the McColl's business and, in particular, a better outcome for its colleagues and pensioners."

To secure the deal Morrisons had to match the offer from the EG Group to clear McColl’s debts and protect all stores and jobs.

Morrisons already works in partnership with McColl’s, many of the former’s shops have been converted into Morrisons Daily stores.

One store is located in Haddenham, it is one of over 200 Morrisons Daily shops in the UK.

The Union of Shop, Distributive and Allied Workers (Usdaw) wants to speak with the supermarket giants to discuss McColl’s staffs’ futures.

Joanne McGuinness – Usdaw national officer says: “It is great news that Morrisons has been successful in their bid to buy McColl’s out of administration and it will be a huge relief for the staff.

"We are now seeking urgent discussions with Morrisons to help secure the future for the staff.

“McColl’s was a non-unionised business, which meant their staff had no real voice in the future of the business.

"Usdaw has a long-standing and productive relationship with Morrisons and we will be looking to extend trade union representation to all staff in McColl’s.”