THE WEEK IN East Bristol & North East Somerset
18th May 2022
Issue 730
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Relief as McColl’s is purchased News last week that the convenience store chain McColl’s had been acquired by Morrisons will have come as a huge relief to staff – at least in the short term. After months of uncertainty over the future of the business, McColl’s was finally sold on Tuesday, the day after being placed into administration by accountants PwC. Over the previous weekend, offers had been made both by Morrisons, who had an initial offer rejected and then by the Issa Brothers’ EG Group which operates thousands of petrol forecourts and shops worldwide. The brothers also co-own Asda.
McColl’s, Chandag Road, Keynsham
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Morrisons ultimately agreed to match the Issa Brothers’ offer as well as taking on McColl’s £170m debt and pension scheme. The deal secured the immediate future of McColl’s 16,000 staff employed across 1,160 branches. Morrisons already has an existing relationship with McColl’s both as a wholesale supplier and through a tie-up which has seen around 200 shops convert to the Morrisons Daily brand. McColl’s currently has around 30 stores in the Bristol area as well as a number of Morrisons Daily stores similar to the one pictured at Hollyguest Road in Hanham. Morrisons’ first bid for McColl’s was rejected by PwC because it did not include all of the current outlets – many of which also house vital Post Office facilities – or the company’s pension fund. It had to commit to these aspects in order to match the Issa Brothers’ bid but analysts are already questioning whether this will be a longterm commitment. Adam Leyland, editor of The Grocer magazine, considered that Morrisons’ wholesale arm stood to lose around £130m if McColl’s had been allowed to go bust but that the deal will now allow it to push forward with the roll-out of the Morrisons Daily network. But other
Commonwealth Games baton coming to the area . . . page 3
Bristol Airport campaigners granted leave to appeal . . . page 5
Morrisons Daily, Hollyguest Road, Hanham
analysts suggest McColl’s financial difficulties stemmed not solely from supply problems during COVID but in trying to update many of its older and smaller stores which were based more heavily around traditional newsagents. Many stores were forced to suspend the sale of alcohol and lottery tickets immediately following the takeover. This is understood to be a licensing issue and was expected to be temporary. But more importantly, McColl’s staff in our local area are currently breathing a sigh of relief.
Dementia awareness warning . . . page 9
Keynsham woman assaulted while walking dog . . . page 11