Bidders looking to acquire McColl’s Retail Group must make it clear they accept the pension promises made to the 2,000 members of its pension schemes, a spokesperson for the trustee says.
This follows numerous reports that the convenience shop, newsagent and post office services operator is on the edge of collapse after almost 50 years in business.
A trustee for the McColl's pension schemes this afternoon (6 May) confirmed administrators have been appointed and that it was already "aware of reports that a number of bidders have expressed interest" in acquiring it.
"The pension schemes are significant stakeholders in the company, and the trustees call on all potential bidders to make clear that they will respect the pension promises made to the 2,000 members by McColl's and its subsidiaries, and will not seek to break the link between the schemes and the company," the spokesperson said.
They added the two schemes were "relatively small" compared to the wider business and that funding them "would clearly be manageable" for any entity acquiring it.
The TM Pension Plan (TMPP) has a total of 915 members while the TM Group Pension Scheme (TMGPS) has 1170. TMPP has a section 75 deficit of £15m and TMGPS has one of less than £1m.
The trustee spokesperson urged: "Breaking the link between the schemes and the sponsor company, by way of a pre-pack administration, would represent a serious breach of the pension promises made to staff who have served the business loyally over many years, and risks causing the schemes to enter the Pension Protection Fund (PPF) with a resulting reduction in benefits."
No deficient recovery contributions would be required for the TMGPS from a new owner, as the is fully funded. The trustee spokesperson confirmed the TMPP is expected to become fully funded on a statutory basis in 2023. The current annual deficit recovery contributions are £1.75m.
Both schemes are also fully funded on a PPF basis, the trustee spokesperson confirmed, but will be subject to PPF assessment. This will be to establish whether the surplus funding is sufficient to buy out at benefits above PPF compensation levels.
They added that the trustee was working closely with The Pensions Regulator (TPR) to "establish how best to protect scheme members" at the current time.
"They will continue to work with stakeholders to protect members' interests and will keep members updated," the spokesperson added.
