Newsagent chain McColl's collapses with Derbyshire staff at risk – but Asda co-owners may yet rescue company

Newsagent chain McColl's – which employs 16,000 people across the country – has entered administration.

Friday, 6th May 2022, 1:48 pm

McColl's, which has over 1,300 stores in the UK, is reported to have appointed administrators after an unsuccessful search for a new buyer.

The company has 10 stores in Derbyshire, and also operates more than 200 outlets nationwide that trade under the Morrisons Daily brand.

McColl's said it took the decision to appoint PwC as administrator after its lenders objected to the potential outcome of a sale for them, as reported by Sky News.

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McColl’s has entered administration after failing to secure further funding or find a new buyer.

EG Group, the petrol stations company run by Asda co-owners Mohsin and Zuber Issa, is reported to be considering a rescue deal. It is hoped that a sale out of administration would preserve the vast majority of its workforce and store estate.

Millions of pounds of McColl’s debt was sold to hedge funds over recent days, and they entered administration despite a cash call from shareholders that raised £30m just six months ago.

If McColl's is not rescued, it would be the largest retail collapse since the Edinburgh Woollen Mill Group in 2020 and Debenhams, which employed about 12,000 people, in that same year.

Full list of McColl’s and Morrisons Daily stores in Derbyshire:

LOUNDSLEY GREEN, DERBYSHIRE, CHESTERFIELD, S40 4RA

NEW TUPTON, DERBYSHIRE, CHESTERFIELD, S42 6EF

GREEN LANE, DERBYSHIRE, DRONFIELD, S18 2LJ

CLOWNE, DERBYSHIRE, CHESTERFIELD, S43 4JN

DERBYSHIRE, BELPER, DE56 1LW

DERBYSHIRE, ILKESTON, DE7 4AD

DERBYSHIRE, BUXTON, SK17 6EF

DERBYSHIRE, BUXTON, SK17 6BP

DERBYSHIRE, BUXTON, SK17 7PU

WHALEY BRIDGE, DERBYSHIRE, HIGH PEAK, SK23 7LP

MORRISONS DAILY MATLOCK GREEN, MATLOCK, DERBYSHIRE, DE4 3BT

MORRISONS DAILY RIVERSIDE, DERBY RD, DE56 2EJ

MORRISONS DAILY CHESTERFIELD, 1 NETHERMOOR RD, S42 6EF

MORRISONS DAILY METEOR, 2-4 ALFRETON ROAD, DE55 2AS

MORRISONS DAILY HARVEY RD SERVICE STATION, DE24 8JZ