Morrisons has today agreed with the Administrator to buy the McColl’s business.

The main elements of the agreement are:

• The transaction will be structured through a pre-pack administration

• The administration was initiated by McColl's board on Friday after McColl's lenders withdrew their support for the business, and became effective today

• Morrisons will acquire all of McColl’s 1,160 stores which include 270 Morrisons Daily format stores

• All McColl’s colleagues will be transferred with the McColl’s business to Morrisons

• McColl’s two pension schemes will be taken on by the Morrisons Group

• The secured lenders and preferential creditors will be paid in full with a distribution also expected to unsecured creditors

• Morrisons Wholesale Supply Agreement to McColl’s stores will continue without interruption

• McColl’s stores will continue to trade

David Potts, Morrisons Chief Executive, said: “Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders. This transaction offers stability and continuity for the McColl’s business and, in particular, a better outcome for its colleagues and pensioners.

“We all look forward to welcoming many new colleagues into the Morrisons business and to building on the proven strength of the Morrisons Daily format.”