Wm Morrisons PLC has won the battle to buy out convenience store group McColl’s after a last-minute deal to buy-off its banks.
Sky News reported the agreement will be structured as a pre-pack administration with all of the stores and staff being kept on.
The private equity-owned grocery chain’s higher bid followed a rebuff from McColl’s lenders on Friday, which was followed by a competing bid from petrol station group owner EG group.
Morrisons' will retain all 1,100 stores and 16,000 workers and honour all of its outstanding pension obligations, according to the report.
McColl's lenders will also be repaid immediately and in full, said the report, something they had insisted upon.
HSBC, Barclays and Natwest had previously rejected a proposed refinancing of the business and the 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 also included an instant repayment of the £165mln owed to the banks, but the importance of Morrisons as a creditor and customer had given it an edge for the administrator