May 6, 2022
Petrol station group EG attempts to buy McColl’s out of administration
Petrol station operator EG Group is attempting to buy convenience store chain McColl's business out of administration, after the crisis-hit retailer rejected a rescue bid from Wm Morrison. Any deal with EG would be agreed and financed by the petrol station group rather than Asda, and the convenience stores would be unlikely to operate under the Asda On The Move brand, the person said. EG is still in talks about how it will approach McColl's pension fund, whose trustee on Friday called for commitments to respect existing pension promises. On Friday the trustees said "Breaking the link" between two pension schemes sponsored by McColl's, by way of a "Pre-pack" administration, would represent a "Serious breach" of the pension promises made to staff who had served the business loyally over many years. "Pre-pack" arrangements can be controversial as they enable pension fund liabilities to be passed to the Pension Protection Fund, the industry lifeboat, where members typically face cuts to their pensions, but the business continues under the new owners.
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