McColl’s stores across the north and north-east face an uncertain future after the convenience store chain battles to avoid falling into administration.
McColl’s Retail Group’s chief executive Jonathan Miller has stepped down as the troubled chain as it seeks to raise cash or find a buyer.
The London-listed company operates 1,265 convenience stores and newsagents across England, Scotland and Wales with around 34 RS McColl stores based in the north and north-east of Scotland.
McColl’s is a stalwart of the high street and is one of Britain’s biggest convenience chains employing around 16,000 people.
The firm reportedly received a takeover approach last month from petrol stations giant EG Group, but it is understood that those discussions have ended.
Petrol stations giant EG Group is controlled by Mohsin and Zuber Issa, the billionaire brothers who bought Asda from Walmart in a £6.8 billion deal last year, and the private equity firm TDR Capital.
The embattled McColl’s group non-executive chairman Angus Porter has taken on the role of executive chairman until a successor to Mr Miller is appointed.
Mr Porter said he was confident the business would find a solution.
“As we discuss with our stakeholders the transformation of our business to a grocery-led convenience offer, Jonathan and the board have agreed that now is the right time to bring in a new chief executive to lead the business into a new phase,” he said.
“In the meantime, we have a strong management team in place to take the business forward, and we are confident in our strategy to capitalise on the opportunity in the convenience sector in the years ahead.”
Mr Miller said: “McColl’s will continue to play a vital role at the heart of local communities across the UK.”
RSM McColls in Scotland was founded by football star Robert Smyth “Bobby” McColl in 1901.
