McColl’s Chief Executive Jonathan Miller has stepped down just weeks after reports that the convenience retailer was at risk of collapsing into administration.
The group said that the search to appoint a new CEO was underway and would be concluded in the near future. In the meantime, Angus Porter, currently McColl’s Non-Executive Chairman, has assumed the role of Executive Chairman on a temporary basis. Karen Bird, Chief Operating Officer, has become Interim Chief Executive to manage day-to-day operations, with CFO Giles David also taking on additional responsibilities.
Miller joined McColl’s in 1991, working initially as Financial Director of vending operations and subsequently in group finance. He was appointed Finance Director of the group’s retail businesses in 1998, Chief Financial Officer in 2004, and then Chief Executive in April 2016.
Miller has led the group’s transition from a newsagent chain to becoming a convenience retailer with over 1,100 stores. However, the business endured torrid trading conditions and supply chain issues last year, impacting both its revenue and profit.
Last month, McColl’s was forced to issue a response to speculation that it needed to raise capital within weeks or risk collapsing into administration. The company stressed at the time that it was confident a financing solution would be found that involves its existing partners and stakeholders. It also confirmed it had received a takeover approach – which was from forecourt giant EG Group – but discussions ended without an agreement.
McColl’s reiterated today that remains in talks with its lenders towards a longer-term agreement in relation to the balance of its existing facility and that it was confident a deal would be reached. It plans to issue an update when these discussions conclude.
Reports earlier this week stated that Morrisons had hired City advisers to consider how it contends with the financial struggles of McColl’s, which is rolling out the Morrisons Daily format to hundreds of stores across its estate and selling the supermarket’s products.
City sources played down talk of Morrisons launching a takeover bid for McColl’s, although they acknowledged that it could seek to acquire sites as part of any break-up or insolvency process.
McColl’s shares have fallen by over 80% in the past year and the business currently has a market capitalisation of just £5.8m.
Commenting on today’s announcement, Chairman Angus Porter said: “As we discuss with our stakeholders the transformation of our business to a grocery-led convenience offer, Jonathan and the Board have agreed that now is the right time to bring in a new Chief Executive to lead the business into a new phase.
“In the meantime, we have a strong management team in place to take the business forward, and we are confident in our strategy to capitalise on the opportunity in the convenience sector in the years ahead.”
Miller added: “I remain a significant shareholder, and I leave confident that, with its clearly defined, convenience-led strategy and strong partnership with Morrisons, McColl’s will continue to play a vital role at the heart of local communities across the UK.”
NAM Implications:
- Pro-active NAMs will have already run the numbers on the incremental sales required if McColl’s succumbs.
- i.e. Divide the amount McColl’s owes you, by your % Net Margin and multiply x 100.
- Meanwhile, McColl’s has to be a snip at £5.8m for 1,100 stores?
- In which case, check for possible Prices & Terms disparities…
- …before a new owner does in on your behalf.
- Welcome to the post-Lockdown/Ukraine norm, folks!
