Sky News has learnt that EG Group Limited (EG Group) was putting the finishing touches on May 6, 2022 to a takeover of McColl's Retail Group plc (LSE:MCLS) through a pre-pack administration that would usurp a rival rescue proposal from Wm Morrison Supermarkets PLC. Insiders confirmed that third party was EG Group, although there was speculation that Morrisons - which has an extensive partnership with McColl's - could seek an injunction to prevent the deal going through. McColl's lenders, which include the taxpayer-backed NatWest Group, are said to have demanded the immediate repayment of their loans, to which EG is said to have agreed.

Under a rival rescue proposal from Morrisons, revealed by Sky News earlier on Friday, the lenders would have seen their loans taken on by the supermarket chain and repaid in full - but over a period of several years. One source said the EG proposal would see the lenders receive 90p in the pound, while another suggested they would be repaid in full. The decision by McColl's to call in administrators will have implications for the company's pension scheme members, and may prompt questions about why a solvent alternative proposed by Morrisons was not accepted.

A spokesperson for Morrisons said of the collapse: "We put forward a proposal that would have avoided today's announcement that McColl's is being put into administration, kept the vast majority of jobs and stores safe, as well as fully protecting pensioners and lenders. "For thousands of hardworking people and pensioners, this is a very disappointing, damaging and unnecessary outcome." EG could not be reached for comment while NatWest declined to comment.