Morrisons and EG Group have both launched final bids to secure rescue deals for convenience chain McColl's after the firm fell into administration on Friday.
The expected collapse of the retailer has placed 1100 shops and 16,000 jobs at risk.
The convenience store chain, which started with a single premise in Glasgow in 190, is expected to formally enter administration today before a pre-pack deal is completed.
Both forecourt giant EG, whose owners also run Asda, and Morrisons have table improved offers to takeover Mccols before the 6pm deadline on Sunday set by administrators.
It is understood that EG has bowed to pressure to look after McColl’s pension liabilities, in a move that means that its 2,000 members will avoid a cut of up to 20% to their promised pensions over their lifetimes.
READ MORE: McColl's convenience stores on verge of collapse
Trustees for the McColl’s pension schemes have called on the Business Secretary Kwasi Kwarteng to do whatever he can to ensure pension scheme members are well protected.
It is reported that EG group's proposal includes plans to retain both stores and staff, alongside an increase to the lower rate of staff up to £10.05.
However, if the forecourt giant takes over McColl's it may result in short term disruption to supply for McColl’s stores.
Morrisons is currently McColl’s wholesale supply partner and is expected to immediately terminate its deal with the convenience chain if their takeover move is unsuccessful.
Morrisons’ early approaches had reportedly been rejected by lenders who preferred EG’s offer to instantly repay more than £160 million in debts from McColl’s.
It is believed that Morrisons has now said it will also repay the lenders in cash.
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