Morrisons to close 132 McColl’s stores with 1,300 jobs at risk
MORRISONS will close 132 McColl's stores leaving 1,300 jobs at risk.
The supermarket today revealed proposals to shut loss-making stores in the convenience chain it bought earlier this year.
Morrisons sealed a deal to buy its troubled rival for £190million in a rescue deal in May.
On Tuesday, Morrisons unveiled plans to overhaul the convenience retailer after competition regulators last week said they were set to clear the takeover.
Morrisons said it expects some McColl’s stores to return to profitability as part of its turnaround plans.
But it added there are "132 stores where there is no realistic prospect of achieving a breakeven position in the medium term".
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Morrisons is yet to reveal which stores it will close but we've asked for a full list.
Of the 132 stores that will close, 55 include a Post Office counter.
But Morrisons will delay the closure of these 55 stores until next year to enable them to serve their communities through Christmas
Bradford-based Morrisons, which itself was bought in a £7billion deal last year, said all 1,300 workers at risk from the closure plans will be offered roles elsewhere in the company.
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Corner shop chain McColl’s was saved from closure after Morrisons swooped in to save 16,000 jobs back in May.
McColl's struggled badly during the pandemic due to supply chain issues, inflation and a heavy debt burden.
And reports suggested that McColl's had notched up £170million of debt.
But Morrisons saw off a rival bid from the EG Group after it tabled an 11th hour improved bid.
Under the original deal, it reported that staff would keep their jobs and all 1,100 shops will be saved - but the supermarket has now backtracked on this promise.
Joseph Sutton, Morrisons’ convenience, online and wholesale director, said: "We have a great deal of work to do but there’s no question that McColl’s is a business with strong potential.
"We very much regret the proposed closure of 132 loss-making stores but it is, very sadly, an important step towards the regeneration of the business.
"I am confident that McColl’s can, in the Morrisons family, once again become a growing, thriving and vibrant convenience business serving local communities across the UK."
The news comes on the same day that Morrisons announced a big change for shoppers in a bid to rival Tesco.
Shoppers that are members of the My Morrisons loyalty scheme will now be able to take advantage of exclusive member-only discounts.
Discounts include half-price tubs of Ben & Jerry's and two tubs of Celebrations, Heroes, Quality Street and Roses for £6.
Customers will need to make sure they scan their physical loyalty card or the My Morrisons app at checkout to secure the discounted food.
The discounted products are only available in-store at all 498 Morrisons stores right now.
Asda also announced yesterday that it had completed its plans to buy over one hundred convenience stores and petrol stations across the UK.
The supermarket bought the stores and linked fuel forecourts from Co-Op at a cost of £438million.
The supermarket giant said the move is part of its plans to open more local, convenience stores.
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The deal includes 129 retail sites with attached petrol stations, plus three development sites.
Around 2,300 workers currently employed by Co-op stores will transfer to Asda's employment following the completion and transition period.
