The convenience retailer McColl's is on the brink of collapse, the company has said today.

The company is one of the biggest convenience store chains in the country and has a store on the junction of Abbott's Road and Novi Lane in Leek.

The company employs around 16,000 people but it is likely to be placed into administration if funding talks are unsuccessful, placing these jobs at risk.

It is uncertain what would happen to the Leek store if the company did fall into insolvency.

McColl's has an extensive partnership with Morrisons and around 1,100 stores around the UK. However, the company is reportedly in around £170 million of debt and has had to borrow money from NatWest, HSBC, Barclays and Santander.

McColl's said in a statement reported by Sky News today: "As previously disclosed on 25 April 2022, the Group remains in discussions regarding potential financing solutions for the business to resolve short term funding issues and create a stable platform for the business going forward.

"However, whilst no decision has yet been made, McColl's confirms that unless an alternative solution can be agreed in the short term, it is increasingly likely that the Group would be placed into administration with the objective of achieving a sale of the Group to a third-party purchaser and securing the interests of creditors and employees. Even if a successful outcome is achieved, it is likely to result in little or no value being attributed to the Group's ordinary shares."