HUNDREDS of jobs across County Durham and the wider North East could be in danger after convenience store McColl’s announced that it could be plunged into administration.

The chain confirmed on Thursday that it is looking “increasingly likely” it could tumble into administration, putting the future of 1,100 shops and 16,000 employees at risk.

Despite the potential impending administration, it’s understood that Morrisons has tabled a last-minute rescue deal to save struggling convenience store business McColl’s.

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The PA news agency understands Morrisons has now approached PwC, who are advising lenders to McColl’s. This would save the vast majority of jobs and stores.

This would include McColl’s stores in Darlington, Durham and further locations in the North East.

A rescue deal would also take on the business as a going concern, absorb its debts of over £100 million and take responsibility for the company’s pension scheme.

Morrisons and McColl’s declined to comment on Friday.

The Northern Echo: The move could spell disaster for shop owners in the North East. Picture: NORTHERN ECHO.The move could spell disaster for shop owners in the North East. Picture: NORTHERN ECHO.

The two businesses are major partners, with McColl’s operating hundreds of convenience shops under the Morrisons Daily brand.

However, 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 said it was in talks over “potential financing solutions” to resolve its funding issues.

The Northern Echo: Despite the difficulties, Morrisons has tabled a bid to save the convenience brand. Picture: NORTHERN ECHO.Despite the difficulties, Morrisons has tabled a bid to save the convenience brand. Picture: NORTHERN ECHO.

“However, 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,” it added.

“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.”

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.

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