Skip to content
Search

Latest Stories

Morrisons beats Issa brothers to take over McColl's

Morrisons beats Issa brothers to take over McColl's

UK SUPERMARKET giant Morrisons announced on Monday (9) it had agreed a rescue deal for British convenience store chain McColl's that will preserve all 16,000 jobs.

Morrisons, Britain's fourth-largest supermarket chain, beat off competition from forecourt giant EG, whose co-owners - the billionaire Issa brothers - also run UK supermarket group Asda.

McColl's went bust on Friday (6) in the wake of supply strains and weak consumer spending as inflation soars.

The food and household products seller, which had around 1,100 UK stores, entered administration - the process whereby a distressed company calls upon outside help to try and minimise job losses - and plunged 16,000 staff into uncertainty.

"All McColl's colleagues will be transferred with the McColl's business to Morrisons," the supermarket said as it confirmed the deal.

Morrisons chief executive David Potts said it represented "a good outcome" for McColl's stakeholders.

"This transaction offers stability and continuity for the McColl's business and, in particular, a better outcome for its colleagues and pensioners," he added.

Both Morrisons and EG tabled final bids on Sunday (8) after McColl's administrators PricewaterhouseCoopers sought a buyer for the chain.

Morrisons already operates about 200 of its stores under the 'Morrisons Daily' brand.

It is understood that Morrisons' successful move will see it repay more than £160 million in McColl's debts, and take over the company's two pension schemes.

McColl's troubles come with Britain enduring a cost-of-living crisis, as UK annual inflation sits at a 30-year high of seven percent.

The Bank of England last week warned that British inflation would top 10 per cent, a four-decade high, by the end of the year, fuelled by soaring energy prices.

And the BoE added that Britain risks falling into recession, as the central bank on Thursday (5) raised its main interest rate by a quarter point to one percent - the highest level since the global financial crisis in 2009.

Consumer prices are surging worldwide on supply strains as economies reopen from pandemic lockdowns -- and in the wake of the Ukraine war that is aggravating already high energy costs.

Britain's cost-of-living crisis was blamed in part on British Prime Minister Boris Johnson's Conservative party losing control of key councils in local elections last week.

On Monday a UK think tank, The Food Foundation, revealed a 57-per cent surge in the proportion of British households cutting back on food or missing meals altogether between January and April.

More For You

Prudential to list Indian asset management venture

Prudential chief executive Anil Wadhwani

Prudential to list Indian asset management venture

INSURER Prudential plc announced that it is considering a partial listing of its stake in ICICI Prudential Asset Management, one of India's leading investment firms. The news sent Prudential's shares soaring by 5.8 per cent to close at 722p on the London Stock Exchange.

The FTSE 100 company currently holds a 49 per cent stake in the Indian joint venture, which market analysts estimate to be worth around £4 billion. ICICI Bank, which owns the remaining 51 per cent, has confirmed its intention to maintain its majority shareholding, emphasising its "long-term commitment" to the partnership that began in 1998, reported the Times.

Keep ReadingShow less
NatWest-Reuters

The bank has set a new performance target, aiming for a return on tangible equity of 15-16 per cent in 2025 and above 15 per cent by 2027. (Photo: Reuters)

What’s driving NatWest’s better-than-expected profit growth?

NATWEST reported higher-than-expected annual profit on Friday, supported by its growth strategy, improved productivity, and capital management efforts.

The bank, which once had assets worth 2.2 trillion pounds—more than twice the size of the British economy—has undergone years of restructuring to focus mainly on domestic consumer and mortgage lending.

Keep ReadingShow less
London business district
A general view shows the London's financial district from an office window in Canary Wharf. (Photo: Getty Images)

Economy grows 0.1 per cent in fourth quarter, defying expectations

THE UK economy expanded by 0.1 per cent in the final quarter of 2024, contrary to forecasts of a contraction, according to official data released on Thursday.

The growth, supported by a stronger-than-expected 0.4 per cent rise in December, offers some relief to chancellor Rachel Reeves as she navigates broader economic challenges.

Keep ReadingShow less
BP-Reuters

Fourth-quarter profit dropped 61 per cent compared to the previous year, marking BP’s weakest results since Q4 2020, when the pandemic reduced global oil demand. (Photo: Reuters)

BP reports lowest quarterly profit in four years, plans strategy reset

BP reported a quarterly profit of £943 million on Tuesday, falling short of expectations and marking its lowest in four years.

The company said it plans a "fundamental reset" of its strategy, days after reports that Elliott Management had taken a stake in the oil major.

Keep ReadingShow less
Shein-Reuters

Shein had aimed to go public in London in the first half of this year, subject to regulatory approvals in the UK and China. (Photo: Reuters)

Shein cuts valuation to £40 billion for London listing

SHEIN is preparing to lower its valuation to around £40 billion for a potential initial public offering (IPO) in London, according to three Reuters sources familiar with the matter.

This is nearly 25 per cent lower than the company's 2023 fundraising valuation as it faces increasing challenges.

Keep ReadingShow less