Lancaster, Heysham and Milnthorpe shop jobs at risk as McColl’s go into administration

McColl's – which has 1,400 stores including in Willow Lane and Barley Cop Lane in Lancaster, Oxcliffe Road in Heysham and in Milnthorpe – said the company's lenders did not want to extend banking agreements that were keeping the business going, according to the BBC.

Accountancy firm PwC has been appointed as administrators and will look for a buyer "as soon as possible".

Supermarket chain Morrisons proposed a rescue deal on Thursday to try to safeguard the chain.

Morrisons is already in a partnership with McColl's, which operates more than 200 Morrisons Daily convenience stores.

However, McColl's said that while discussions with Morrisons had "made significant progress", its lenders had made clear they would not reach a conclusion that was acceptable to them.

"In order to protect creditors, preserve the future of the business and to protect the interests of employees, the board was regrettably therefore left with no choice other than to place the company in administration," said McColl's.

Asda co-owner EG Group, which is controlled by the billionaire Issa brothers, could strike a deal to rescue the bulk of the company, Sky News has reported.According to its website, McColl’s serves about five million customers each week, having been founded in Glasgow in 1901.

But earlier this week, the listed company warned that its shares would be suspended because it was unable to meet the deadline for filing its annual results.

McColl's said that its accounts would not be signed off in time to meet the deadline.