McColl’s has struck an agreement with wholesale partner Morrisons that will see the embattled retailer convert a further 100 of its locations into Morrisons Daily stores.
The move, which will now see McColl’s convert 450 of its locations into the new Morrisons Daily format before November 2022, comes after the retailer issued yet another profit warning earlier in November amid supply chain headwinds in the fourth quarter of its trading year.
However, McColl’s, which highlighted that its conversion efforts were running ahead of schedule, stated Morrisons was now extending its support and upping its contribution to the enlarged conversion programme.
McColl’s also noted that it had struck an agreement allowing it to defer a financial covenant test due on 28 November until 31 December, providing it with more time to “work constructively” with lenders and arrange support for 2022.
As of 0900 GMT, McColl’s shares were up 3.24% at 12.39p.
