McColls shares to be suspended over debt negotiations

Struggling convenience store business McColls is set to have its shares suspended from the London Stock Exchange as bosses said they would be unable to get its accounts signed off by auditors in time.

The retailer has been in discussions with potential lenders to shore up the business, which struggled badly during the pandemic due to supply chain issues, inflation and a heavy debt burden.

Shares in the company had already plunged as it reported last month that talks with its lenders and banks would likely leave shareholders empty-handed under rescue efforts.

The group, which runs more than 1,100 convenience shops, said: “The company confirms it will not be in a position to publish its annual report for the year ended 28 November 2021 by the end of May 2022, as originally intended.

“The delay reflects the need for a conclusion to discussions with key stakeholders around a potential financing solution for the business, in order to finalise the company’s 2021 audited financial statements.

“As these discussions remain ongoing, the board has concluded there is now insufficient time in order to meet the current deadline for filing these results under the Listing Rules.”

Shares are set to be suspended from June 1, it added, once discussions with regulators conclude.

Under stock market rules, listed companies must publish results within six months or risk having shares suspended.