Shares in convenience group McColl’s are to be suspended after the company admitted that ongoing emergency funding talks mean it will miss the deadline to file annual accounts.
The retailer has been in talks with potential lenders about rescue funding for months. The business has been pushed to the brink of administration by supply chain issues, inflation and a £97 million debt pile it cannot afford to service.
The continued discussions with lenders mean McColl’s will miss the May 31 deadline to file its 2021 results. Shares will be suspended from June 1 as a result, once discussions with regulators conclude.
“The delay reflects the need for a conclusion to discussions with key stakeholders around a potential financing solution for the business, in order to finalise the company’s FY21 audited financial statements,” the company said.
The stock has crashed over 90% since the start of the year and was down another 5% this morning, droping 0.05p to 0.85p.
Under stock market rules, listed companies must publish results within six months or risk having shares suspended.
It warned recently that “softer” sales over Easter mean profits for the year will be no better than the £20 million it made in the previous 12 months.
McColl’s has been teetering on the brink of collapse for some months. Last month it said even a successful funding deal would leaving invesotrs in its stock with “little or no value”.
The business, which has 1,100 sites and employs 16,000 staff, wants to find a buyer or investors to pump enough cash into the company in order to avoid administration.
The Issa family, which own Asda and the EG petrol forecourt group, made a takeover approach for in February but subseqently walked away.
Morrisons, McColl’s main supplier, has been tipped as a potential buyer for all or part of the business.