CONVENIENCE chain McColl’s has confirmed it will collapse into administration, putting 1,100 shops and 16,000 workers at risk.

The troubled retailer held talks with its lenders this morning, Friday, in the hope they could extend their loan agreements.

Supermarket giant Morrisons, which is a major wholesale partner, also tabled a last-ditch effort to buy the business.

However, the company confirmed ‘the lenders made clear that they were not satisfied that such discussions would reach an outcome acceptable to the’”.

It said the company will now appoint administrators from PwC in an effort to ‘preserve the future of the business and to protect the interests of employees’.

The company said it hopes that the administrators will help to ‘implement a sale of the business to a third-party purchaser as soon as possible”’

McColl’s has stores – including those operating under the Morrisons Daily brand - in Clifton Drive, Northwich, Whitlow Lane, Moulton, Willow Square, Wharton, Abbots Way, Winsford, Cheviot Square, Winsford, Poplar Drive, Middlewich, London Road, Alderley Edge and London Road, Holmes Chapel.

It is understood that Morrisons is still interested in a takeover, while Sky News has reported that forecourt giant EG Group is interested in a deal.

McColl’s has struggled financially in recent years after witnessing soaring costs due to supply chain disruption, inflation and its large debt burden.

On Thursday evening, McColl’s had said it was in talks over ‘potential financing solutions’ to resolve its funding issues.

Shares in McColl’s were suspended earlier this week after the company delayed the publication of its latest financial results due to its financing talks.