igh street retailer McColl’s has announced that its chief executive Jonathan Miller is to step down from the company as it searches for a financial lifeline to stave off administration.
The 30-year veteran of the company will be replaced on an interim basis by Angus Porter, currently non-executive chairman.
Porter will assume the role of executive chairman on a temporary basis, as McColl’s hunts for a new permanent boss. Giles David, chief financial officer, will also take an expanded role at the company.
Shares sunk 4.7% on the news.
The shock departure comes amid talks to secure emergency funding to stave off potential collapse. Shares are down over 90% since last summer.
Late last year, McColl’s warned investors that supply chain disruption had been a “major constraint” to trading, leading to gaps on shelves within its stores.
McColl’s has 1,300 convenience stores and newsagents located throughout the UK. The convenience store chain employs an estimated 16,000 people, and is understood to have 6000 full-time workers.
The group trades under the RS McColl banner in Scotland and has a partnership with Morrisons, Morrisons Daily.
This week Houlihan Lokey was appointed to advise supermarket Morrisons on its joint venture with McColl’s, Sky News reported. Morrisons, which is owned by private equity firm Clayton Dubilier & Rice, has a partnership with McColl’s that now includes more than 200 shops
Miller said: “It has been an enormous privilege to work for McColl’s for the last 30 years, most recently leading the business and transforming our offer in partnership with Morrisons.
“I have worked alongside so many talented and hardworking people and I am enormously grateful for the support I have had from the many thousands of colleagues in the business over many years.”
A month ago McColl’s received a takeover approach from petrol station giant EG Group that ultimately fell through.