1,300 redundancies feared as CMA clears supermarket’s £190m takeover
Just days after the Competition & Markets Authority cleared the way for Morrisons’ £190million takeover of McColls, the supermarket has announced around 1,300 of the convenience chain’s workers are facing redundancy.
The CMA said last Thursday, 27 October, it would accept that “Morrisons shall, using its best endeavours and acting in good faith, as soon as reasonably practicable” divest itself of 28 stores from McColls’ existing estate where the authority felt there were competition concerns.
However, on Tuesday, 1 November, it was revealed that Morrisons plans to shut 132 stores it has identified from the 1,160-strong estate, which includes 270 Morrisons Daily format stores, as having “no realistic prospect of achieving a breakeven position in the medium term”, with closures anticipated in “an orderly fashion” over the remainder of the year – this puts around 1,300 McColl’s workers at risk of redundancy.
Following last week’s CMA announcement David Potts, Morrisons’ chief executive, said: “I’m pleased that the acquisition of McColl’s has cleared the final regulatory hurdle, McColl’s is a business with great potential and over the last few months we have been making plans for its integration into Morrisons, for investment and for growth. We will be outlining these plans shortly.”
But on Tuesday came the statement outlining the closure plans, and David added: “Today marks an important moment for the McColl’s business, colleagues and customers as we formally welcome the business and its colleagues into the Morrisons family.
“We are now able to begin the urgent journey to transform McColl’s into a viable, well-invested and growing operation. I’m confident that the McColl’s conversions, combined with the increased competitiveness that will be unlocked through investment and synergies, will make Morrisons a growing force in the important convenience market in the years to come.”
Set up in Glasgow in 1901, McColl’s group has its head office in Brentwood and is now made up of McColl’s Retail Group, Martin McColl Limited, Clark Retail Limited, Dillons Stores Limited, Smile Stores Limited, Charnwait Management Limited and Martin Retail Group, and its managed stores and newsagents all sell a wide range of greeting cards and wrap alongside foodstuffs and essential items.
Top: Greeting cards and wrap are prominent in McColl’s stores
