London, 15 July 2022 – Global law firm Hogan Lovells has advised PwC as administrators of the McColl’s business, in relation to the rescue of McColl’s two defined benefit pension schemes.
Morrisons’ purchase of the McColl’s business was agreed in May and all 16,000 employees were successfully transferred to Morrisons. The Hogan Lovells team advising PwC on the sale was led by partners Debbie Gregory and James Maltby. (See Hogan Lovells advises joint administrators PwC on pre-pack sale of UK convenience store operator McColl’s.)
The terms of the acquisition also included an agreement to undertake a pension scheme rescue, which would transfer the responsibility for McColl’s two defined benefit pension schemes to Morrisons, avoiding the need for the schemes to enter the Pension Protection Fund (PPF). The rescue of both schemes has now been confirmed by the PPF and the Morrisons Group will provide support to the two schemes going forward.
Katie Banks, who led the pensions team on the matter at Hogan Lovells said: “We are delighted to have assisted the PwC team in securing the rescue of the two McColl’s pension schemes. Such scheme rescues are very rare so it is a fantastic outcome for the 2000 members who would otherwise be facing reduced pension benefits from the PPF. The rescues were implemented by innovative solutions that ensured better outcomes for both members and creditors which we are pleased to have been involved in.”
Katie Banks was supported by senior associate Beth Sheehan.
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