McColl’s warns short-term funding unlikely to benefit stocks, 42% drop


April 25 (Reuters) – McColl’s (MCLSM.L) warned on Monday that it was increasingly unlikely that its common shares would benefit from potential funding that could help solve its short-term funding problems, sending prices plummeting. shares of the British convenience store chain by 42%.

The cash-strapped company, which is still in talks with lenders and banks to secure more financing, forecast a tepid annual base profit due to lower consumer spending and supply issues.

UK retailers are facing a range of challenges including a cost of living squeeze, supply problems, higher costs and inflation reaching its highest level since 1992. Read more

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The company said it does not expect its annual adjusted core profit to exceed last year’s 20 million pounds ($25.47 million).

London-listed McColl’s plans to delay the release of its annual results until funding negotiations are resolved.

Its convenience store partner, Morrisons, said last month it was considering options to deal with McColl’s financial difficulties, according to a Sky News report. Read more

The company, which operates more than 1,100 convenience stores, said it was in talks with its wholesale partners to ease product availability issues as shortages of its key products intensified last year.

($1 = 0.7852 pounds)

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Reporting by Sinchita Mitra in Bengaluru; Editing by Sherry Jacob-Phillips

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