Thousands of jobs saved after Morrisons wins race to rescue McColl's

Supermarket giant Morrisons has clinched a last ditch deal to buy the convenience store chain McColl's after it went bust last week.

The convenience store chain fell into administration last Friday, plunging the future of its 1,100 shops and 16,000 staff into doubt.

As ITV News Economics and Business Editor Joel Hills notes, the deal means that McColl's debts will be settled immediately and in full.

All the staff and stores will be taken on, with employee pension schemes to also be protected, it is understood.

A business that looked headed for oblivion has survived intact, as Business Editor Joel Hills reports

Morrisons, which is McColl's key wholesale supplier, had been in a battle with EG Group, the Blackburn-based petrol station empire owned by the billionaire Issa brothers Mohsin and Zuber, who also own Asda.

As part of a proposed deal, EG Group were reported to have offered to take responsibility for McColl’s pension scheme, in its effort to match Morrisons' offer.

McColl’s has struggled financially in recent years after witnessing soaring costs due to supply chain disruption, inflation and its large debt burden.

Last week, shares in the convenience chain were suspended after the company delayed the publication of its latest financial results due to its financing talks.

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