McColl’s seeks buyer as debts rack up

Convenience store chain McColl’s is seeking a capital injection before a deadline to agree new financing terms with lenders. The company, which operates 1,100 newsagents and convenience stores across the UK, is looking for a buyer or a third-party investment to stave off insolvency after supply chain disruption weighed on profit. The group is also negotiating a relaxation of its financing terms with its lenders as it seeks additional headroom against its financial covenants. Net debt, excluding property leases, stood at £111m at the end of May. EG Group is understood to have held discussions about an offer for McColl’s, but has since decided against a bid. Morrisons, which has a partnership with McColl’s, was also said to be monitoring McColl’s situation with a view to possibly acquiring hundreds of its stores out of insolvency. The Times (£)