McColl's enters administration- 16,000 jobs and 1,100 stores at risk after major collapse

Morrisons previously tabled a rescue deal to McColl’s lenders to keep the business afloat and preserve as many jobs as possible by keeping most of its shops open.

The two firms already have close ties with McColl’s operating its smaller convenience brand Morrisons Daily.

A spokesperson for Morrisons said: “We put forward a proposal that would have avoided today’s announcement that McColl’s is being put into administration, kept the vast majority of jobs and stores safe, as well as fully protecting pensioners and lenders.  

“For thousands of hardworking people and pensioners, this is a very disappointing, damaging and unnecessary outcome.”

McColl’s has reportedly also been in talks with the Issa brothers whose private equity firm TDR Capital previously took over Asda and EG Petrol.