CONVENIENCE chain McColl’s has been saved by Morrisons in a rescue deal.

This means employees working at the stores in Hill Street, Brierley Hill and Belbroughton High Street will keep their jobs.

The chain fell into administration on Friday, May 6 plunging the future of its 1,160 shops and 16,000 staff into doubt.

Morrisons and forecourt giant EG Group both tabled final offers on Sunday, May 8 to secure a rescue deal for McColl’s.

EG – whose owners also run supermarket giant Asda – had initially been favourites to complete a rescue deal for McColl’s.

Stourbridge News: McColl's Belbroughton. McColl's Belbroughton.

Morrisons’ early approaches had reportedly been rejected by lenders who preferred EG’s offer to instantly repay more than £160 million in debts from McColl’s.

However, it is understood that Morrisons’ successful move will also repay the lenders in cash.

Morrisons had also originally proposed to only save the “vast majority” of job and stores, but improved this offer during the bidding process.

“All McColl’s colleagues will be transferred with the McColl’s business to Morrisons,” the supermarket said on Monday.

Stourbridge News: Image/ PA.Image/ PA.

Morrisons chief executive David Potts said: “Although we are disappointed that the business was put into administration, we believe this is a good outcome for McColl’s and all its stakeholders. This transaction offers stability and continuity for the McColl’s business and, in particular, a better outcome for its colleagues and pensioners.

“We all look forward to welcoming many new colleagues into the Morrisons business and to building on the proven strength of the Morrisons Daily format.”

A spokesperson for the McColl’s Pension Schemes said: “The trustees welcome the announcement that Morrisons will continue to support the schemes following its acquisition of the McColl’s business.”

McColl’s also runs around 270 stores under the Morrisons Daily brand.