The Competition Markets Authority has cleared the acquisition of McColl’s convenience chain by Morrisons. The chain of convenience retailers and newsagents was placed into administration in May due to poor performance during the pandemic. Pre-pandemic, McColl’s entered a fresh produce partnership with Morrisons, and the stores that transitioned to this new model performed well. The stores that had not made the shift failed. McColl's operated stores under the Morrisons Daily and McColl's, Martin's and RS McColl titles.
“Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders. This transaction offers stability and continuity for the McColl’s business and, in particular, a better outcome for its colleagues and pensioners. We all look forward to welcoming many new colleagues into the Morrisons business and to building on the proven strength of the Morrisons Daily format,” said David Potts, Morrisons Chief Executive.
Since the acquisition was given the go-ahead, Morrisons announced the closure of 132 McColl’s stores and hopes to transition most of the remaining stores to the Morrisons Daily format. With the store closures, 1,300 jobs are at risk.
