MORRISONS has revealed proposals to shut 132 McColl’s stores, putting around 1,300 jobs at risk.
The convenience chain was bought by the supermarket giant earlier this year after a deal was sealed to buy its troubled rival for £190 million in a rescue deal in May.
Morrisons unveiled plans to overhaul the convenience retailer after competition regulators said last week that they were set to clear the takeover.
While Morrisons said it expects to see some McColl’s stores return to profitability as part of its turnaround plans, it highlighted that there are “132 stores where there is no realistic prospect of achieving a breakeven position in the medium term”.
Bradford-based Morrisons, which was bought in a £7 billion deal last year, said that the 1,300 people whose jobs are at risk will be offered other positions within the company.
The supermarket group said 55 of the 132 stores earmarked for closure include Post Office counters and will therefore close next year.
The overhaul plan will see McColl’s stores converted to the supermarket’s own Morrisons Daily brand.
A previous partnership means that 286 of the current trading 1,164 McColl’s stores are already under the Morrisons Daily banner.
Morrisons said it now plans to convert the “substantial majority” of stores to Morrisons Daily stores following a review, with plans to bring the total to more than 1,000 under the banner within two years.
David Potts, chief executive of Morrisons, said: “Today marks an important moment for the McColl’s business, colleagues and customers as we formally welcome the business and its colleagues into the Morrisons family.
“We are now able to begin the urgent journey to transform McColl’s into a viable, well-invested and growing operation.”
Joseph Sutton, Morrisons’ convenience, online and wholesale director, said: “We have a great deal of work to do but there’s no question that McColl’s is a business with strong potential.
“I’m confident that the combination of McColl’s conveniently located stores and great colleagues, together with Morrisons' scale, brand, systems and fresh food expertise, will lead to a transformation of the business.
“We very much regret the proposed closure of 132 loss-making stores but it is, very sadly, an important step towards the regeneration of the business.
“I am confident that McColl’s can, in the Morrisons family, once again become a growing, thriving and vibrant convenience business serving local communities across the UK.”
McColl’s branches in Gwent:
- Abergavenny: Hereford Road
- Caldicot: Wesley Buildings, Newport Road
- Hengoed: St Cattwgs Avenue
- Monmouth: Wyesham Road
- Newport: Bettws Centre
- Newport: Ringland Centre
- Newport: Roman Way, Caerleon
- Newport: St John’s Crescent, Rogerstone
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