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Britain's McColl's Set For Shares Suspension

Struggling British convenience shop chain McColl's said on Tuesday it is likely to request the listing of its shares be suspended on 1 June as it will not meet a deadline to publish its annual results by the end of May.

The 1,100-store group runs McColl's and Morrisons Daily branded convenience stores as well as Martin's newsagents. It employs about 16,000.

It said the delay reflected the need for a conclusion to talks with key stakeholders around a potential financing solution for the business in order to finalise year to 28 November 2021 audited financial statements.

Listing Rules

'As these discussions remain ongoing, the board has concluded there is now insufficient time in order to meet the current deadline for filing these results under the Listing Rules,' it said.

McColl's warned last month that even if a financing solution is achieved it was likely to result in little or no value being attributed to the group's equity.The group has a wholesale tie-up with Morrisons, Britain's fourth biggest supermarket chain.

Shares Fall

On the 25 April, McColl's warned it was increasingly unlikely that its ordinary shares would benefit from a potential financing that might help resolve its short-term funding issues, sending shares of the store chain down 42%.

The cash-strapped firm, which is still in talks with lenders and banks to secure more funding, forecast tepid annual core profit due to lower consumer spending and supply snags.

British retailers are battling a series of challenges, including a cost-of-living squeeze, supply snags, higher costs, and inflation hitting its highest levels since 1992.

News by Reuters edited by Donna Ahern Checkout. For more Retail stories click here. Click subscribe to sign up for the Checkout print edition.

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