Letchworth: Retailer McColl's is set to call in administrators

McColl's convenience store chain has revealed administrators may be called in, as it struggles to land a deal that could rescue the ailing company.

The UK retailer has more than 1,000 small shops around the country, including a site in Letchworth - with more than 16,000 jobs in the balance nationwide.

McColl's have admitted any rescue package is likely to fail due to the belief that its shares hold little value.

The store stocks a wide range of everyday products and services in Letchworth town centre.

Letchworth's McColl's, situated at 73 Station Road, also has a Post Office where people can send parcels, make payments including utility bills and purchase travel money. The store also has a National Lottery terminal.

McColl's said: "Whilst no decision has yet been made, McColl's confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the group would be placed into administration with the objective of achieving a sale of the group to a third-party purchaser and securing the interests of creditors and employees.

"Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the group's ordinary shares."

In April McColl's cautioned investors about 'short-term funding issues', while blaming reduced customer revenues, and ongoing supply chain disruption across the industry.

Earlier this week McColl's said it would be delaying the publication of its annual set of results as it continued discussions about 'finding a solution for the business.'

McColl's can trace its history back to 1901, when a Scottish footballer, Robert Smyth McColl, opened the first RS McColl in Glasgow.

The modern day company started in 1973 as a vending machine operator, going to purchase convenience store chains prior to concentrating on the retail sector at the start of this century.