Nationwide convenience store chain McColl’s is on the brink of collapse, with the store in Brean among those that could be at risk.
The retailer says it is “increasingly likely” that it would fall into administration unless talks around a rescue deal were successful.
The statement on Thursday came after Sky News reported that the company could call administrators today (Friday).
McColl’s encountered problems during the pandemic due to supply chain issues, inflation and a heavy debt burden.
McColl’s says that without any fresh funding in the short-term, the group would likely “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.” But the chain also stressed that discussions are still ongoing.
The chain has a store in Brean’s South Road, pictured here, alongside its 1,400 stores across the UK.
In a statement, a representative for the firm says: “The group remains in discussions regarding potential financing solutions for the business to resolve short-term funding issues and create a stable platform for the business going forward.”
“However, 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.” The spokesman said a further update would be made ‘as and when appropriate’.