BRADFORD'S Morrisons has agreed to purchase collapsed retailer McColl’s.
Morrisons will acquire all of McColl’s 1,160 stores which include 270 Morrisons Daily format stores.
The administration was initiated by McColl's board on Friday after lenders withdrew their support for the business, and became effective today.
Stores will continue to trade and employees will be transferred with the McColl’s business to Morrisons.
Morrisons Wholesale Supply Agreement to McColl’s stores will also continue without interruption.
The transaction will be structured through a pre-pack administration
The secured lenders and preferential creditors will be paid in full with a distribution also expected to unsecured creditors.
McColl’s two pension schemes will be taken on by the Morrisons Group.
David Potts, Morrisons Chief Executive, 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.
“We all look forward to welcoming many new colleagues into the Morrisons business and to building on the proven strength of the Morrisons Daily format.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here