Mccoll's Retail Share Discussion Threads

[barnes4] 07/5/2022 10:19

Give me my money back 🤣🤣🤣

[pwhite73] 07/5/2022 10:09

FLC - "Morrisons still potentially have a window to serve an injunction to stop the process."

Stop what process?. I'm not sure that many of you know what administration is. McColl's called in the administrators as it had no choice. Once the banks refused their settlement offer the company was trading insolvently, meaning trading without being able to service its debts. Trading whilst being unable to service your debts (insolvent) is a criminal offence under the Companies Act 2006. McColl's legally had no choice but to call in the administrators.

Administrators are officers of the High Court so the company is 100% in administration no ifs or buts about it. What goes before the High Court are the names of the administrators that's all.

[tomboyb] 07/5/2022 09:53

There would have to be some sort of consolidation -

[loganair] 07/5/2022 09:51

As such the Issa brother will not be paying any price for McColl's, only paying off the debt in full.

I can easily see once the Issa have taken over McColl's, that is if they do, they'll not keep their promise to keep all the stores open and over a period of say a year will close a couple of hundred down if unable to sell the leases.

[kinwah] 07/5/2022 09:45

Loganair, I believe the Issa brothers have said they would TAKE all the shops and staff. In other words they would expect to pay a lower price as they would save the administrator the job of closing stores and sacking people which would be incredibly wasteful for the stock in the stores. But I agree I can't see that many of the unconverted stores will be retained but again the Issas are probably better placed to move them on to family type owners.

[mrblueface] 07/5/2022 07:58

These mugs had been warned plenty of times over the last few months but ignored it PMSL

[flc] 07/5/2022 07:56

They are not yet officially in administration until Monday when the courts have to approve it. A press article stated that Morrisons still potentially have a window to serve an injunction to stop the process. Doubt that will happen but you never know.

[mrblueface] 07/5/2022 07:55

Tucked up like kippers PMSL

[loganair] 07/5/2022 07:50

Following the news that McColl’s has fallen into administration; Honor Strachan, food & grocery analyst at GlobalData, a leading data and analytics company, offers her view: “McColl’s move to start selling fresh produce was implemented too late for the retailer to capitalize on consumers’ shift to local shopping during the COVID-19 pandemic. Stores stocked with Morrisons’ fresh produce reportedly performed well, but the rollout was not fast enough to secure footfall, as consumers turned to online shopping or nearby convenience stores that had better ranges and a more pleasant shopping environment. Indeed, much of the McColl’s estate is underinvested and has fallen behind the quality of rivals.

“Pre-pandemic, McColl’s held a stable share of the UK convenience market, estimated at 4% in 2019. However, this dropped to 3.3% last year–falling from seventh to ninth place in just two years. The retailer clearly failed to adapt to the swift changes in shopping habits, despite neighbourhood convenience players performing better than those exposed to urban areas.

“McColl’s tie up with Morrisons makes the grocer the most likely candidate for a late rescue bid, securing the future of its wholesale business and the Morrisons Daily fascia. However, Asda owners EG Group could scupper this, following reports that the company is looking to acquire the flawed convenience chain. During a period of intense cost pressure on UK grocers, and an unfavourable outlook for margins and profitability, an acquisition for either of the private equity owned grocers would be a massive undertaking and a distraction from their core business – especially as raising cash to help absorb these pressures and to invest in retail prices should be the primary focus this year.”

[loganair] 07/5/2022 07:39

If the Issa/ASDA offer for McColl's fails then the administrators will almost certainly then have to accept the rejected Morrison's offer which was to take on the debt instead of paying it off as ASDA are offering.

Being reported if Morrison's are successful they'll take on the 270 already converted Morrison Daily's, the 170 agreed and still to be converted and maybe upto a total of 800 stores and would also protect McColl's pension scheme. This would still leave a little over 300 stores will be closed. It seems to me one of the main reasons why this offer was rejected was because Morrison could have taken over McColl's a year or two ago and didn't.

The Issa offer is to pay off McColl's debt in full in return for full ownership of McColl's. Issa's have said they would keep all the shops and staff which I find very hard to believe.

[tomboyb] 07/5/2022 07:37

Very unusual to see the share price on top of the leaders board with the share is suspension -

Ultimately what matters to shareholders here is the equity -

The equity has "absolutely" zero value -

[rookieswingtrader2020] 07/5/2022 05:06

Interesting, fair enough. It sounds like you consider someone "buying certain assets from the company" more likely than someone "buying the company itself". In the former case the shareholders would still get nothing (assuming the company remains insolvent notwithstanding those asset sales - which is probably a safe enough assumption). In the latter case the shareholders I think would get something (because the company itself would be sold).

[shanejay74] 07/5/2022 04:40

I can't see the brothers buying the whole estate as there in locations mostly inaccessible to wagons and no most don't have car parks or easy access to parking. In fact most up north are either converted houses or units with no warehouses. I still feel this will fail 100% and 16000 people will be unemployed on Monday. I can see them going for the larger x coops with carpark and not the ones with only street parking and coffin sized warehouses

[rookieswingtrader2020] 07/5/2022 04:13

But administration and liquidation are not remotely the same thing. This is administration. Whether or not it leads to liquidation is by no means certain.

[letmepass] 07/5/2022 02:52

It was a good gamble but it failed. Only shareholders lefr were retail. Game over

[letmepass] 07/5/2022 02:48

They have 180 million debt and no assets to cover that. So it liquidation aka administration or whatever you want to call it

[letmepass] 07/5/2022 02:45

Its administration and as such all is lost. Move on

[rookieswingtrader2020] 07/5/2022 01:05

So in that example all existing shareholders collectively would be seriously diluted, to say 5% ownership, instead of their previous 100% ownership.Still, perhaps better to own 5% of a rescued company than 100% of a company in dire need of rescue.

[rookieswingtrader2020] 07/5/2022 00:52

"But liquidation is only one way", I meant to write.