Suppliers

What has happened?

The Group had faced financial pressure over recent years resulting from Covid-19 related challenges and, most recently, supply chain challenges, creating issues in product availability.  

Mixed trading impacted the Group in March and April 2022. While a recovery in trading performance had  continued during the first half of March, the business experienced softer trading through the Easter period, impacted by reduced consumer spending and continued supply chain disruption across the industry.

Throughout the period the Group continued discussions with its key stakeholders, with a view to agreeing a new funding deal for the business to continue as a going concern. However these discussions did not result in an option which could be delivered in the time available and that would generate the best outcome for the creditors as a whole. 

I’m pleased to tell you that on 9 May 2022 most of the Companies’ business and assets were sold to Alliance Property Holdings, part of the Morrisons Group (“the Purchaser”).

Should I continue to supply goods and services to the business?

The Purchaser will be continuing to trade from all locations and will be responsible for all future liabilities incurred (being any deliveries made, purchases or services provided after the date of administration). 

The Companies in administration are not continuing to trade, however for a short period of time, we will facilitate future trading by the Purchaser under Transitional Agreements as part of the Asset and Purchase Agreement (“APA”). 

The Purchaser will be in contact with you directly regarding ongoing supply.

I am owed money. What notification will I receive?

The administrators will send a report to all known creditors and members within one week of the appointments. This report is known as the administrators’ proposals and will outline steps taken by the joint administrators to date and the strategy going forwards.

The administrators are also required to provide a written update on the administrations to all known creditors every six months. This report will be sent within one month of every six month anniversary or earlier if an administrator vacates office or an extension to the administration is granted.  

When will I get paid?

Payment for goods and services provided prior to the date of appointment will not be paid for as an expense of the administration estate. 

All outstanding amounts at the date of the Joint Administrators’ appointment will be an unsecured claim in the administration. You can submit a claim with the administrators into the relevant estate for the amount you were owed prior to their appointment. If there are funds available, you may receive a dividend payment in due course, although at this time we cannot estimate what this will be. 

We will shortly be providing guidance on how creditors can submit a claim.

If your claim includes VAT, you may be able to obtain VAT bad debt relief six months after your supply. 

I have goods on site. Can I get them back?

If you believe you have a Retention of Title claim over goods that you have supplied to the Companies please complete a retention of title questionnaire and return it to us via email at uk_mccolls_retentionoftitle@pwc.com. Our appointment means that you can’t start or continue legal action, enforce security or repossess any goods held by the Companies unless we agree or the court allows it.

For all other supplier queries, please email uk_mccolls_suppliers@pwc.com