Morrisons and EG Group launch bids for collapsed retailer McColls with outlets in Worksop, Blyth and Retford

The convenience chain fell into administration on Friday, plunging the future of its 1,100 shops and 16,000 staff into doubt.

Forecourt giant EG – whose billionaire owners the Issa Brothers also run supermarket giant Asda – had been favourites to complete a rescue deal for McColl’s.

However, it is understood that both EG and Morrisons both tabled late improved offers prior to the administrators’ Sunday 6pm deadline for offers.

Morrisons’ early approaches had reportedly been rejected by lenders who preferred EG’s offer to instantly repay more than £160m in debts from McColl’s.

It is believed that Morrisons has now said it will also repay the lenders in cash.

McColl’s filed a notice for administration on Friday and is now expected to formally enter administration, but will immediately be sold to a new owner.

Morrisons is a wholesale supplier to McColl’s. It also has a deal to convert hundreds of McColl's shops to Morrisons Daily convenience stores.

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