Suffolk McColl's stores could close as administration 'likely'

Jobs could be at risk at Suffolk McColl's convenience stores after it becomes apparent that the business could soon fall into administration. 

Chain bosses have said unless talks with potential lenders are successful it is “increasingly likely that the group would be placed into administration”.

McColl's, which has some 16,000 employees across the UK, operates more than a dozen shops across Suffolk, some of which are in locations where they are the only shop and provide an important public service – such as in Hollesley.

A spokesman for the chain said: “As previously disclosed on April 25, 2022, 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”, and when asked by sky news about the potential that administrators could be brought in on Friday they refused to comment further. 

One member of McColl's staff at a Suffolk store, who asked to remain anonymous, said: "I feel very much that I'm being told not to worry by McColl's, but as more information is being given to the press I worry about not having enough time to put things in place to find a new job. 

"McColl's is telling its staff to continue as normal yet are showing very obvious signs of closure or administration, and it makes me feel like I'm stuck in Limbo."