British retailer McColls risks closing shops

The British retail group McColls, which has about 50 shops across Essex, warns it could be placed into administration following challenges in the industry.

McColls has more than 1,100 shops around the UK, which includes Morrisons Daily outlets and Martin’s.

At least 16,000 people are employed by the company around the country. 

The first McColl’s shop was opened in 1901 in Glasgow by Scottish footballer, Robert Smyth McColl.

The company is now looking to find a solution for the reduced consumer spending and supply chain disruption because of the pandemic.

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A McColl’s representative said: “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.”