Administrators of McColl's Retail Group PLC (LSE:MCLS) have received improved bids from Morrisons and Asda owner EG Group to save the convenience store chain from collapse.
McColl's, which employs more than 16,000 staff at its 1,100 shops, said it had called in administration on Friday, after its lenders, HSBC, Barclays and Natwest, rejected a proposed refinancing of the business and initial proposals from Morrisons and EG.
Ahead of a 6pm deadline yesterday, EG Group, which is backed by the billionaire Issa brothers and private equity firm TDR Capital, made an offer that included an instant repayment of the £165mln owed to the banks but said it would take responsibility for the McColl’s pension scheme.
It was reported that EG has since made a U-turn on the pension scheme after speaking to pension trustees over the weekend, according to reports.
Morrisons, which was bought by private equity group Clayton Dubilier & Rice last year, has also been reported as agreeing to repay the banks in cash.
Once in administration, McColl's is expected to be snapped up in a 'pre-pack deal' that may allow new owners to ditch some liabilities.