LONDON (ShareCast) - (Sharecast News) - Troubled UK retail chain McColl's went into administration on Friday after talks with Morrisons to buy the chain of convenience stores fell through.
The company, with 1,100 stores and 16,000 staff confirmed creditors refused to extend a deadline for it to raise more cash.

"In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration, appointing PriceWaterhouseCoopers as administrators, in the expectation that they intend to implement a sale of the business to a third-party purchaser as soon as possible," the company said in a statement.

"Whilst the constructive discussions with the company's key wholesale supplier to find a solution with them to the Company's funding issues and create a stable platform going forward had made significant progress, the lenders made clear that they were not satisfied that such discussions would reach an outcome acceptable to them."

McColl's will apply to the court later today to appoint the administrators. Shares on the stock market have been suspended.

Reporting by Frank Prenesti

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