Convenience store McColl's has collapsed into administration, putting over 16,000 jobs at risk with over 1,100 stores across the UK.

The company's lenders said they did not want to extend the banking agreement that were keeping the business going. 

With the Accountancy firm PriceWaterhouseCoopers now appointed as the administration who are set to be looking for a buyer "as soon as possible."

The news comes following supermarket chain Morrisons proposed rescue deal on Thursday to try to safeguard the chain.  

News and Star: Thousands of jobs are at risk. (PA)Thousands of jobs are at risk. (PA)

Earlier this week, it was revealed the group was set to have its shares suspended from the London Stock Exchange as bosses said they would be unable to get its accounts signed off by auditors in time.

Shares in the company had already plunged as it reported last month that talks with its lenders and banks would likely leave shareholders empty-handed under rescue efforts.

What does administration mean?

Following the financial burden of the pandemic and supply chain issues, many businesses have been forced into administration. 

Administration is similar to bankruptcy and only occurs when a company becomes insolvent and is put under the management of a  Licensed Insolvency Practitioner.

The main purpose of administration is the aim to rescue a company which is typically done by finding another buyer.