Monday, November 28, 2022
HomeUnited Kingdomafter avoiding bankruptcy, McColl's will close 132 stores, 1,300 jobs at stake

after avoiding bankruptcy, McColl’s will close 132 stores, 1,300 jobs at stake

The British grocery chain McColl’s, bought and saved from bankruptcy in May by the supermarket giant Morrisons, will close 132 stores, which could mean 1,300 redundancies, according to an announcement from the new owner. “A number of McColl’s stores are loss-making» and for 132 of them, «there is no realistic prospect of achieving profitability in the medium termMorrisons said in a statement. The majority will be closed by the end of the year.

Unfortunately, this means around 1,300 McColl workers are at risk of redundancy.“, the group continues, specifying that the individuals concerned would be offered reclassifications in other stores or logistics centers within the group. Morrisons announced in May the takeover of McColl’s, which had filed for receivership, taking over its 16,000 employees and more than 1,100 stores.

The operation, completed for 190 million pounds according to the British press, was validated on October 27 by the British Competition Authority (CMA), subject to the sale, currently being implemented by Morrisons, of 28 McColl’s stores. Morrisons already had more than 200 stores open in partnership with McColl’s, of which he was also the main wholesaler. The vast majority of McColl’s stores will now follow the same path and transform into “Morrison’s Daily“.

McColl’s, whose sales had benefited from the closure of pubs and restaurants at the height of the pandemic, had seen its financial situation deteriorate sharply last year with revenues down 11% in 2021. Morrisons, for its part, was bought a year ago by US private equity firm Clayton, Dubilier and Rice (CD&R), with an offer valuing the group at £7 billion, approved in June by the CMA.

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