We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
"Morrisons paid £182.1 million to buy McColl’s, docs have shown. The chain was valued at less than £3m before its collapse. Administrators at PWC said that while EG offered more in cash because Morrisons was not claiming its debts unsecured creditors will get 50% more"
https://mobile.twitter.com/AArmstrong_says/status/1526570097258659840
SkyMonkey - this was the response I received from the Administrator (PwC) on the 10th May (1 week ago!)
McColl's Retail Group PLC - in Administration ("the Company")
Thank you for your query titled "Status of my ******* currently suspended shares ?". This has been allocated a reference number of *********
We will be issuing the Joint Administrator's Proposals in the coming weeks which will contain details regarding any potential return to Shareholders.
The shares are still showing in my HL account and showing blue, I might add. That said, does anyone know when we'll be notified as shareholders officially as to what has happened. Rather than a notice saying the shares are suspended?
what were the details of the offers on the table, was this rigged, how do the offers compare.
Morrisons are said to have come up with a deal that keeps the company going in its entirety, then that was superceded by the Issa deal, then Morrisons coming back with a better offer.
so what's the better offer? let's see the details. were the offers genuine or was it rigged? was the company put into administration to bypass a shareholder vote on the deal. was it necessary to put the company into administration given that Morrisons had supposedly tabled an offer that kept the company going, which they then improved further. what are the details of these offers. was the administration forced illicitly. is this all above board. has anyone rigged anything that they shouldn't have. has there been anything that the shareholders should have known about but weren't informed. has anyone operated in a way that they shouldn't have. does this whole thing look a bit odd. are shareholders going to receive anything from the offers produced. is this acceptable and were the deals done in a competitive and fair manner.
I made £10 from mcls shares and i think myself very lucky
At least Dick Turpin wore a mask
CDF1 and 1887
CDF1, I so agree with you that the shareholders have been robbed, it’s actually impossible not to agree because the owners of the company have had their assets removed from them very skilfully , robbed in other words by profit hungry private equity.
Yes 1887 we need to see the details of what was done behind closed doors with any consultation with the owners who now feel like victims. An explanation of how daylight robbery is perfectly legal and ethical business practice would help ?
Not shopping at Morrisons anymore and……
im sure there are a large number of investors with questions that remain unanswered. i doubt whether telling people to move on etc is going to change anyone's view. we are yet to see the outcome of PwC's administration so let's see what they do before anyone makes a conclusion on this. we don't know the details of what deal was done so its difficult to objectively appraise things at the moment.
Now I’m off out for a walk and to get some (free) fresh air !
Absolutely disgraceful that OUR money bought him out and will continue to fund conversions !!!!
I’m not often lost for words BUT this has left me speechless!!!
its questionable if it was a bona-fide legitimate collapse, it looks like an organised instruction that went exactly to plan while shareholders and the public appear to be kept in the dark as to the actual details, negotiations and deals that have been made.
Miller left the firm after six years in charge. Sources said he owned 10 per cent of the company's shares,
now worthless after the collapse ?????
*********************************
why are shareholders at the bottom of the list when it comes to administration? its not alot different to an employees wages or a creditors repayment. same money. why the difference in priority? somehow the shareholders are seen as dispensable. they have an equal stakeholding in the company as do all the other interests, in fact, if it weren't for the shareholders the company wouldn't exist in the first place so you might argue that they should be first in the pecking order, not last.
Wait and see what happens. Then take action.
Agree! The Banks put the final boot in knowing their money was safe if EG took it when insolvent, as that had always been their plan since they walked away in February. Morrisons would have known that was what EG would be doing, and i think they knew that the trump card was the pension monies.
Personally, i think this was slightly more suspicious than your ordinary pre-pack insolvency. It happened far too quickly last week for my liking.... how did a warning of 'insolvency happening in 3 weeks time' suddenly become....shares suspended and administrator called in? The meekest of warnings granted... which were pretty clear, although i smell a rat involving a 3-way stitch up here....( although probably will never be investigated ) everyone seemed to know what was happening except us.
The only thing that was pre-packed and sent on their way was the owners of the company.
https://amp.theguardian.com/business/nils-pratley-on-finance/2022/may/09/mccolls-saga-banks-recession-rescue-administrators
'So why were administrators summoned by the banks last Friday? The answer to that question seems only to be the fact that the rival proposal from EG Group, the petrol forecourt business owned by the Issa brothers of Asda fame, would have seen lenders get paid in full upfront. Put another way, the banks – understood to include Barclays, HSBC and NatWest – prioritised certainty for themselves even though the EG proposal, at that stage, created uncertainties for McColl’s pensioners who were exposed to the risk of a cut in their benefits.'
So basically the banks forced admin to pave the way for a bid by the EG group as they were prepared to pay the debt upfront. Interesting article, obviously Morrison's were forced to pay upfront in the end too but just shows that this business should never have gone into admin. Legitimizes the feel here of being shafted.
Some of the comments on the Board remind me of the Monty Python, Dead Parrot sketch. The business that was listed is no more. The administrators are now following a prescribed process under which they will identify and quantify all creditors of the business and their priority of claim against the proceeds of the sale of the businesses assets. Only when they are all paid in full will shareholders get anything. Since it is normal for there to be a significant shortfall for even ordinary creditors, existing holders can assume that the PLC is pushing up daisies.
given all the staff vacancies advertised recently it looks very much like a going concern. I can't see Morrisons Daily shutting the doors to customers. the suspension to trading was described as temporary so as far as i can see its business as usual notwithstanding a period of transition to integrate whatever needs to be integrated.
Question.
Although this officially went into administration, the entire debt was paid off and the entire company was kept intact including the pension fund and therefore for me it’s still trading as a going concern, albeit now owned by a PE firm and now debt free. this means it never actually liquidated in true sense of word
Morrisons Owners have also stated it will keep Morrisons and McColls brands separate for time being and allow existing mgmt to run it.
So , In theory, is it not still possible this could relist? And maybe the new owners cud add a big chunk of shares to the float to make them majority shareholders and sp and mcap gets rebased? This wud give them an option to recover their outlay if and when the sp shud grow.
This wud obviously heavilty dilute shareholders in the short term, but still give SH an option and a fight chance to recover some of their losses.
It is blue sky thinking, but just asking if this is theoretically at least still possible to relist under the circumstances
Cud be one way to claw back the upfront debt payments they made if the business recovers back to profit making and the sp goes back up.
https://www.gov.uk/guidance/tell-the-cma-about-a-competition-or-market-problem
Report a business cartel
A business cartel occurs when 2 or more businesses agree that they won’t compete with each other.
This may include price-fixing, bid-rigging, market-sharing or sharing information between businesses.
You can report cartel information to us:
using the online reporting form
email: cartelshotline@cma.gov.uk
call: 020 3738 6888
You may be eligible for a financial reward if you give us information that leads to an investigation, for more information read Cartels: policy for witnessing and reporting.
Report businesses agreeing not to compete with each other
Anti-competitive activity occurs when 2 or more businesses agree not to compete with each other.
If a business enforces unfair terms in a consumer sales contract, or unfair consumer notices, they’re taking part in illegal, anticompetitive behaviour.
If you suspect a business may be involved in anti-competitive activity, you can report your concerns to us by emailing general.enquiries@cma.gov.uk.
You must include:
your contact details
the name of the business you’re concerned about
a description of the issue
any supporting evidence
details of other organisations you’ve contacted about this
you will still own shares in the company which is being subsumed into Morrisons effectively. unless your shares are purchased off you outright by Morrisons, and for a price that you both agree, you could have a claim in any profits from the company which subsumed your share holdings. it would depend exactly what the deal was when it was cut, and if it was fair. shareholders should have been entitled to have a say on the deal but if that is taken out of their hands then a fair compensation in lieu would need to be made. name your price. 1p, 2p, 5p, 25p, 50p, 100p etc. what do you feel your shares are worth? bearing in mind the utility that you helped create, ie Morrisons in McColl's, what does that look like to you in terms of value and worth? to me I would say it looks like a valuable concern, certainly far greater than 1.6p. possibly in the region of 50 or 75p, going forward, probably alot greater than that. so if Morrisons want to relinquish their liability they would need to do so with your approval and at a price that is acceptable to you both. the notion that there is no money to pay you is a false one. if you are not paid off then you remain a liability until such time that that is settled.
Presumably Morrisons themselves would have been one of largest unsecured creditors.as a supplier, then contractors developinging the new outlets then HMRC perhaps
So what Morrison pay themselves from their own kitty?