The petrol retailer EG Group looked set to edge out a rival rescue bid for McColl’s from Morrisons as the convenience chain crashed into administration on Friday, Sky News learns.
The billionaire brothers behind one of Britain’s biggest fuel retailing empires are close to sealing a last-ditch swoop on McColl’s Retail Group that could lead to thousands of job losses.
Sky News has learnt that EG Group was putting the finishing touches on Friday to a takeover of McColl’s through a pre-pack administration that would usurp a rival rescue proposal from Morrisons, the supermarket chain.
EG’s shareholders are identical to those of Asda, Morrisons fellow Yorkshire-headquartered food retailing rival.
McColl’s confirmed in a lunchtime announcement to the London Stock Exchange that it was to appoint PricewaterhouseCoopers (PwC) as administrator, confirming a Sky News report on Thursday.
It said its “senior lenders have this morning declined to further extend the waiver of the Company’s banking covenant… in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible”.