Hopes that corner shop chain McColl's Retail Group PLC (McColl's Retail Group PLC (LSE:MCLS)) might be saved from complete collapse hung in the balance Friday afternoon.
A possible deal with Morrisons that had sent shares in the troubled convenience group soaring this morning has fallen through, but late in the day Sky News was reporting that EG Group, co-owners of Asda, might step in with a rescue plan.
McColl’s said around lunchtime that it had gone into administration, putting 16,000 jobs at risk.
Accountancy firm PwC has been appointed administrators and will look for a buyer “as soon as possible.”
Sky News had earlier reported Morrisons' proposal, with the supermarket chain already in partnership with the convenience store
However, McColl’s said that while “significant progress” had been made, its lenders made clear that discussions with the fourth largest supermarket would not reach an acceptable conclusion.
Morrisons said it was "very disappointed" McColl's lenders had spurned its rescue offer.
A spokesman said: "We put forward a proposal that would have avoided today’s announcement that McColl’s is being put into administration, kept the vast majority of jobs and stores safe, as well as fully protecting pensioners and lenders.
"For thousands of hardworking people and pensioners, this is a very disappointing, damaging and unnecessary outcome."