Five McColls stores to go in East Lindsey as rescue bid fails

East Lindsey is to lose five McColl’s convenience stores – just months after supermarket giant Morrisons bailed the company out of administration.

McColl's in Skegness has escaped closure but will eventually operate as a Morrisons Daily.
McColl's in Skegness has escaped closure but will eventually operate as a Morrisons Daily.

In May, Morrisons beat a rival offer from EG Group, promising to pay off McColl's £170m debts and take on its 1,160 shops and pension schemes, with 2,000 members.

However, it was a short-lived relief for customers of stores in Chapel St Leonards, Ingoldmells, Louth and Alford, who are included in the 132 store shutdowns that are planned.

Stores in Boston, Woodhall Spa, and Market Rasen have escaped closure – but are to operate as Morrisons Daily as part of a three-year bid by the supermarket chain to save the firm.

The closures are putting 1,300 jobs at risk across the country although Morrisons says it is offering alternative employment.

The affected Lincolnshire sites are:

Louth Eastgate – LN11 9QE

Louth North Somercotes – Ln11 7PL

5 Kennedy Way, Immingham – DN40 2AB

Alford South Market Place – LN13 9EB

Skegness Ingoldmells – PE25 1PG

Skegness Trunch Lane – PE24 5TU

There is an additional blow for customers at North Somercotes McColl’s stores – as the Post Office counters inside these shops will also close.

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.

“We are pleased to be able to offer every colleague alternative employment within the Morrisons group, but we fully recognise that this might not be a practical solution for all colleagues.”

McColl’s started with one Scottish store in 1901 and at its height became a a leading neighbourhood retailer across England, Scotland and Wales, with over 1,100 stores, 16,000 staff, four million weekly customers and a turnover of over £1 billion.