Struggling UK retail chain McColl’s took office on Friday after talks with Morrisons to buy the convenience store chain broke down.
The company, which has 1,100 stores and 16,000 employees, confirmed that its creditors have refused to extend a deadline to raise more funds.
“In order to protect creditors, safeguard the future of the business and protect the interests of employees, the board unfortunately had no choice but to place the business into administration, appointing PriceWaterhouseCoopers as directors, in the hope that they intended to implement a sale of the business to a third party purchaser as soon as possible,” the company said in a statement.
“While constructive discussions with the company’s main wholesale supplier to find a solution with them to the company’s financing problems and create a stable platform in the future had made significant progress, the lenders have clearly indicated that they were not convinced that these discussions would lead to an outcome acceptable to them.
McColl’s will ask the court later today to name the administrators. Stock market shares have been suspended.
Reporting by Frank Prenesti
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