Morrisons drafts in advisors for McColl’s options
According to Sky, Morrisons has appointed Houlihan Lokey to explore options regarding the future of the ‘embattled’ convenience retailer
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Morrisons has reportedly drafted in City advisers to help it weigh up options for the future of its convenience store partner, McColl’s Retail Group, according to Sky News.
The outlet reported Morrisons has appointed Houlihan Lokey to explore options regarding the future of the “embattled” convenience retailer.
Morrisons, which is owned by private equity firm Clayton Dubilier & Rice, has a joint venture with McColl’s that extends to more than 200 shops.
Sources told Sky that the appointment of Houlihan Lokey “should not be interpreted as a sign that Morrisons planned to launch a takeover bid for McColl’s”.
However, they noted that the supermarket chain could look to acquire sites as part of a future break-up or insolvency process.
Last November, McColl’s announced it had agreed a deal with Morrisons to extend the number of Morrisons Daily converted stores from 350 to 450 stores over the next year.
The group said it expected to complete all 450 conversions by the end of November 2022, compared to its previous target of 350 in the same timeframe.
Morrisons said it was “extending its support and increasing its contribution to the enlarged conversion programme”.
Morrisons has been contacted for further comment.
